BUMP Token - The native token of the Bumper ecosystem
The native token of the Bumper ecosystem is BUMP, an ERC-20 token with a total maximum supply of 250,000,000 tokens with a scheduled release.
The BUMP contract address is 0x785c34312dfa6b74f6f1829f79ade39042222168
Why do I need BUMP tokens?
BUMP tokens are at the heart of the Bumper crypto price protection protocol:
- In order to use the Bumper dApp for opening Maker or Taker positions, you need BUMP tokens in your wallet, which are bonded for the duration your position is open.
- Token holders can stake unbonded tokens, and earn staking rewards.
- BUMP is also the governance token of the Bumper protocol, with holders automatically getting the right to raise and vote on improvement proposals, alongside other protocol specific decisions.
Bonding BUMP tokens
In order to use the Bumper dApp for opening Maker or Taker positions, you need BUMP tokens in your wallet. This is called Bonding.
Bonded tokens cannot be transferred, but neither are they deducted in fees, and are returned to you when your position is closed.
However, should you withdraw or close your position early, you will forfeit your BUMP bond.
The exact amount of BUMP tokens required is calculated by the system, and the more you are protecting, the more BUMP you will need.
BUMP incentives
BUMP tokens which are bonded may earn additional incentives under certain conditions.
A “Network incentive” is a payment in BUMP tokens made to early adopters who open Maker or Taker positions, to encourage these users to become more active participants in the protocol.
Furthermore, a “boost incentive” may come into play, with the Bumper protocol issuing BUMP tokens to participants, particularly early BUMP token holders.
BUMP incentive estimates are calculated automatically by the protocol when a position is opened, and are finalised when the position is closed.
Staking
Holders of BUMP tokens not being used for bonding may choose to support the network effect and health of the protocol by staking their tokens in the Bumper dApp.
As with all DeFi protocols, the staking of tokens does come with a small (albeit unlikely) degree of risk, and as such, those who stake their BUMP tokens earn a share of the daily BUMP rewards.
See more about Staking BUMP tokens here
Governance
BUMP tokens act as governance tokens for the Bumper protocol, allowing holders to influence new Bumper features, configuration updates or other changes through representative voting.
Voting power on Bumper Improvement Proposals is determined by holding size and the length of time held.
Thus BUMP token holders who are early adopters and long-term supporters of the protocol are afforded extra weighting.
Note: The initial release of Bumper is not expected to include full DAO functions, which will be added in subsequent updates.
Where to buy BUMP
You can buy BUMP tokens on Uniswap at present, however we are currently in the process of listing BUMP on a number of exchanges.