May has always been a great time for releases. Top Gun (1986), Rocky III (1982), Friday the 13th (1980) and both the subsequent Star Wars films (1980 and 1983 respectively) had their debuts during the month of May. Good times.
And May 2023 is a key milestone for us, as we’re shortly going to be deploying Bumper’s DAO governance contracts on May 18.
Bumper’s DAO will grant BUMP token holders the power to participate in protocol decisions and upgrades.
Bumper’s DAO lays the foundation for a future where decision-making is distributed among BUMP token holders. This framework provides a platform for open, transparent, and inclusive governance of the protocol and is largely based on an already battle-tested codebase.
Bumper’s DAO governance model is designed to be a comprehensive and straightforward process that begins with community discussion, followed by a proposal submission and ends with proposal execution.
Throughout the process, users are encouraged to actively participate via the Bumper Governance forum and to vote on whether to adopt or reject proposals.
Prior to a proposal’s creation, a Bumper Request for Comments (BRC) is opened using Discourse, giving the community a chance to discuss potential changes to the protocol and take a sentiment vote via Snapshot. From this dialogue, a Bumper Improvement Proposal (BIP) is formulated.
The BIP begins as an Initial Bumper Improvement Proposal (iBIP), which is first reviewed by the Technical Steering Committee (TSC), whose job is to ensure that improvement proposals meet certain criteria, both technically and in line with the existing roadmap plans.
Once approved by the TSC, the iBIP is upgraded to a full BIP, and the warmup period begins, leading to a community vote and finally, adoption and implementation into the protocol if passed.
BUMP token holders can participate in the Bumper DAO by obtaining voting power, known as vBUMP, which is granted to token holders who stake their BUMP tokens into Bumper’s DAO contract.
Users who have staked their BUMP can choose to also lock their stake for up to 1 year, and earn bonus vBUMP. Bonus vBUMP decays over the period of their lock, eventually reaching the 1:1 level with their staked BUMP token amount at the end of the lock period.
For example, if a user stakes 1000 vBUMP, and decides to lock their stake for a year, they earn a 2x multiplier giving them 2000 vBUMP. This then decays back to 1000 vBUMP linearly over the year.
Additionally, users can delegate their base vBUMP voting power (but not any bonus vBUMP) to other users, who then vote on the delegators’ behalf. Delegation can be invoked and revoked at any time, allowing token holders to appoint another user as a proxy for their vote.
Bumper’s DAO establishes governance thresholds to prevent a minority of users from disproportionately influencing governance. These include a requirement of a minimum level of vBUMP required to create a proposal, a quorum, and supermajority acceptance levels for a proposal to be approved.
Participation in the Bumper DAO isn’t just about voting on proposals. It also comes with some gnarly perks!
Bumper offers rewards to incentivize token holders to participate in governance, with the amount earned based on the amount of tokens staked (or locked). Whilst there are many different incentive models out in the cryptosphere, our preference is to direct rewards to those users who actively participate in Bumper’s governance.
The official launch of the Bumper DAO will take place on the 18th of May 2023.
Stay tuned for more updates, user guides and in-depth articles on the different aspects of how the governance model will function.
Ultimately, Bumper is your protocol, belonging to the community of users, supporters and token holders who reckon half-century-old options products, developed long before the internet was conceived, need a complete reboot here in the DeFi age.
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