Staking (Secondary Utility)

Objective: provide a means for token holders to support the protocol by staking BUMP and earning a yield.

Staked tokens risk liquidation up to a predefined maximum percentage if certain community-endorsed economic or operational triggers manifest. Staking is designed as a safety module that acts as a backstop for the protocol in case of a possible insolvency scenario. To date, through years of simulation and analysis, there has been no economic fallout in the crypto market that has demonstrated a significant risk to the protocol that would necessitate the use of the Staking module. The Staking module is designed, however, to accommodate this possibility and provide adequate incentive for the user to support the network via staking.

The incentive is distributed to the user on an epoch-based period and expires every 2 weeks. The user will be required to collect the rewards or lose them.

STAKING	TIER REQUIREMENTS*	TIER INCENTIVES*
Tier 0	Flexible	Standard Staking Rate
Tier 1	Locked for 1 month	1.5x Standard Staking Rate
Tier 2	Locked for 2 months	3x Standard Staking Rate
Tier 3	Locked for 3 months	6x Standard Staking Rate

* All tier incentives and requirements are example figures yet to be determined.