DAO Overview & Structure
BUMP token holders are given the opportunity to participate in the governance of the Bumper protocol by raising, and voting on, proposals using vBUMP voting power.
vBUMP is granted to users who stake BUMP tokens into the DAO (Decentralised Autonomous Organisation). There is no minimum amount of BUMP which must be staked in order to participate, but the amount of vBUMP a user receives is dependant upon how much BUMP they stake.
A user who stakes their tokens is allocated vBUMP voting power at a 1:1 ratio. vBUMP is not a separate token, rather a measure of voting power, which can only be used inside the Bumper DAO ecosystem.
Staked tokens may be unstaked at any time without penalty, but the amount of vBUMP allocated to the user will reduce by the same amount.
Users who stake their tokens for vBUMP can additionally opt to lock their stake for up to a 1 year period in order to earn additional bonus vBUMP voting power. When BUMP is locked, it cannot be withdrawn from the DAO until the chosen expiry date for the lock.
A user may delegate their vBUMP to another user's wallet, to support a user who wishes to raise a proposal or to allow them to vote on their behalf as a proxy. Only the base vBUMP (that is the vBUMP which was allocated on a 1:1 ratio for staking BUMP tokens) can be delegated to another user, not any bonus vBUMP which was earned for locking.
Users who delegate their vBUMP to another wallet may undelegate it at any time without penalty.
There are a number of stages which a proposal must undergo in order to be accepted.
Firstly, it is highly recommended that a proposer present their idea in the Bumper Forum where it can be discussed and/or amended by other community members.
To begin the formal proposal stages, a user who holds sufficient vBUMP in their wallet raises an initial Bumper Improvement Proposal (iBIP) using the Bumper DAO dApp.
Next, the proposal is reviewed by the Technical Steering Committee (TSC) to ensure it is in good order and valid. Once it has been approved by the TSC, there are 4 main community stages which the proposal must pass through:
- 1.Warmup Period - During the Warmup Period, users have a chance to view the proposal, and delegate or undelegate their vBUMP to/from another user.
- 2.Voting Period - During the Voting Period, users who hold vBUMP voting power can cast their vote either in favour (for) or not in favour (against) the proposal.
- 3.Queue Period - During the Queue Period, a proposal which has reached sufficient support to be passed may be cancelled if one of the following occurs:- The creator manually cancels the proposal - The creators' BUMP balance drops below the Proposal Creation Threshold. - A successful Abrogation vote is passed. The queue period must be activated by a user action.
- 4.Grace Period - During the Grace Period, the proposal is considered executable, and a user must call the execute function. If this does not occur within this timeframe, then the proposal expires and will not be activated without going through the process again.
The diagram. below outlines the flow for a Bumper Improvement Proposal:
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Bumper Improvement Proposal flow
There are a number of checks and balances which have been implemented into the design of the DAO, in order to minimise the risk of a malicious actor attempting to hijack the protocol. These include minimum voting thresholds, a review by TSC, abrogation votes and granting additional vBUMP voting power to users with a long-term outlook who lock their tokens into the Bumper DAO.
Last modified 2mo ago