Staking & Locking
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
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