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.
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 When BUMP is locked, it cannot be withdrawn from the DAO until the chosen expiry date for the lock.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.
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:
- 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:
- 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:
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.