Bumper Docs
bumper.fiDiscordForum
  • Learn
    • What is Bumper?
    • Documentation Structure
    • Why Use Bumper?
      • Comparison with stop-loss
      • Comparison with options
    • BUMP Token
      • Overview
      • BUMP Token Ecosystem
        • Design Background
        • Token Utility
        • Token Network
          • Network Bond (Primary Utility)
          • Network Incentive (Primary Utility)
          • Representative Governance (Primary Utility)
          • Network Boost (Secondary Utility)
          • Staking (Secondary Utility)
        • Roadmap
        • Token Metrics
          • Token Details
          • Token Emission
        • DAO Governance
          • Current Status
          • Future Status
    • Staking
    • Guides
      • Connect a wallet
      • Hedge - Open a position
      • Hedge - Exit a position
      • Hedge - Renew a position
      • Earn - Open a position
      • Earn - Close a position
      • Earn - Renew a position
      • dApp Interface
        • Dashboard
        • Hedge Positions
        • Earn Positions
      • Risk Rating
      • How do I add my BUMP to Metamask?
      • How do I add my bUSDC token to MetaMask?
      • How to buy BUMP on Uniswap
      • Liquidity Mining
        • How to Participate In Bumper’s Liquidity Mining Program - A step-by-step guide
      • Troubleshooting
      • Use cases & strategies
      • Legacy Guides
        • How to unstake & claim rewards from legacy staking
        • Claiming vested BUMP tokens
        • Withdrawing liquidity from Bumper's legacy LP program
        • Claiming BUMP tokens for Public Sale Participants
    • Protocol Risks
      • General risks
      • Taker liquidations
      • Maker liquidations
    • Premiums and Yields
    • FAQs
    • Troubleshooting
  • Protocol
    • Overview
      • Preliminaries
      • User Positions
    • Premium
      • Price Risk Factor (PRF)
      • Liability Risk Factor (VRF)
      • Probability of Claim
      • Liquidity Risk Factor (LRF)
      • Computing the Premium and Updating State
      • Visual Representation of Premium
    • Rebalancing
      • Cross-Side Rebalance and Swap Deadband
      • Asset and Capital Ledger
      • Rebalancing Trade Grid
      • Computing Swap Amounts
      • Same-Side Rebalancing
    • Taker Lifecycle
      • Taker Optionality
      • Taker Share
      • Taker Fungibility
      • Taker Position Token
      • Taker Risk Rates
      • Taker Renewal
      • Taker Close and Claim
      • Taker Position Expiry
      • Taker Ejection
      • Taker Cancellation
    • Maker Lifecycle
      • Maker Optionality
      • Maker Share
      • Maker Fungibility
      • Maker Position Token
      • Maker Risk Rates
      • Maker Withdrawal
      • Maker Renewal
      • Negative Yields
    • Simulation
    • Glossary
  • Governance
    • Overview
    • DAO Overview & Structure
      • Purpose of the DAO
      • Committees
      • Forum
      • Quorums
    • Economic Settings
      • Parameter tuning
      • Community involvement
    • Voting Power
      • vBUMP
      • Staking & Locking
    • Bumper Improvement Proposals (BIPs)
      • Before a proposal is created
      • Raising a proposal
      • Committee review
      • Warmup Period
      • Voting period
      • Grace & Queue periods
      • Abrogation
    • DAO user guides
      • How to Stake tokens in the Bumper DAO
      • How to Unstake tokens in the Bumper DAO
      • How to Claim Staking Rewards in the Bumper DAO
      • How to Lock tokens in the Bumper DAO
      • Delegating vBUMP
      • How to Undelegate vBUMP in the Bumper DAO
      • Voting on a governance proposal
      • Cancelling a vote
      • Voting on an Abrogation Proposal
      • Creating a Proposal in the DAO
      • Execute a proposal in the Bumper DAO
    • DAO Legal
  • Developers
    • Architecture
    • Modules
    • Contract Address List
  • Community
    • Community Code of Conduct
    • Alpha
      • Feedback and Support
      • Reporting Bugs
      • Connecting to Bumper network
  • Security
    • Audits
  • Legal
    • Terms and Conditions
    • Disclaimer
    • Privacy Policy
Powered by GitBook
On this page
  • Staking BUMP
  • Locking BUMP
  1. Governance
  2. Voting Power

Staking & Locking

PreviousvBUMPNextBumper Improvement Proposals (BIPs)

Last updated 1 year ago

Staking BUMP

Staking your BUMP tokens for vBUMP is the key to participating in the Bumper DAO.

Rewards for staking your tokens are issued via the DAO*, and the more you stake, the more of the rewards pool you will earn. You can add to your stake at any time, and furthermore, you may withdraw your staked BUMP at any time without penalty, although if you do unstake, you will lose the associated amount of vBUMP.

*NB: DAO rewards emissions will not begin until the Bumper dApp is released on mainnet in August 2023.

Locking BUMP

Users may choose to lock BUMP for a period of up to one (1) year and get a bonus amount of vBUMP. Users cannot withdraw their BUMP tokens until after the lock expires. Bonuses are applied in a linear fashion, with a maximum 1-year lock granting a maximum 2x vBUMP multiplier.

Example of locked BUMP multipliers:

- lock 1,000 BUMP for 1 year and get 2,000 vBUMP (2x multiplier)

- lock 1,000 BUMP for 6 months and get 1,500 vBUMP (1.5x multiplier)

Lock decay

Bonus vBUMP has a linear decay relative to locking duration, reaching the 1:1 ratio when the lock expires.

Example of linear decay: - lock 1,000 BUMP for 1 year and get 2,000 vBUMP at T=0 (on the first day of locking the BUMP).

- after 6 months, half of the bonus vBUMP awarded would have decayed, so the voting power at this time would be 1,500 vBUMP.

After the locking period has expired, users can restart the locking period again, gaining vBUMP at the full multiplier available, which decays over the length of the lock as before.

Topping up the lock If the user introduces more BUMP into the Governance dApp during a locking period, the current multiplier applies to the total BUMP locked.

For Example: A user has 10,000 BUMP tokens which they lock for a period of 1 year. This gives them 20,000 vBUMP which begins to decay linearly. At exactly halfway through the locking period, the user buys a further 5000 BUMP tokens and locks them into the Governance contract for six (6) months. The same multiplier is applied to the newly introduced BUMP tokens giving a total vBUMP as shown below: Initial supply of locked BUMP => 2x Multiplier = 10,000 BUMP = 20,000 vBUMP on day 1 6 months later, vBUMP = 1.5x Multiplier = 15,000 vBUMP New BUMP = 5000 BUMP at 1.5 Multiplier = 7500 vBUMP Total vBUMP at this time = 22,500 vBUMP

Linear decay of bonus vBUMP gained through locking staked BUMP tokens