- Summary:
- The new Bifrost 2.0 model will enable holders of its native token (BNC) to gain exposure to the protocol’s sustainable earnings and revenue.
Bifrost, the leading liquid staking protocol on Polkadot and Kusama, has announced a significant upgrade to its tokenomics model. The new model, part of the Bifrost 2.0 initiative, will enable holders of its native token (BNC) to gain exposure to the protocol’s sustainable earnings and revenue.
The transition aims to attract long-term investors and align multiple stakeholders in the development and growth of the Bifrost ecosystem, while at the same time enhancing the protocol’s economic stability and resilience. Bifrost currently generates revenue from a combination of transaction fees, system staking income, swap fees, and liquid staking commissions.
Key features of the new tokenomics model will include the introduction of bbBNC (Buy Back BNC), a revised version of the ve-escrow (veModel) favored by various established protocols. Users can obtain bbBNC by locking Bifrost’s liquid staking token vBNC, after which they will enjoy benefits such as staking rewards, governance rights, and revenue sharing. According to Bifrost, 90% of protocol revenue will flow in the direction of bbBNC token-holders.
With its latest update, Bifrost says a growth flywheel will be created that reduces the circulating supply of BNC and drives up its price. The new tokenomics will come into effect in Q4. Prior to then, educational materials will be circulated to inform users about BNC 2.0 and bbBNC. Additionally, a vToken summer campaign is set to launch at the end of August, incentivizing staking volume across the vToken types currently supported by Bifrost.
The unveiling of Bifrost 2.0 aligns the protocol with other leading DeFi projects which have also recently pursued governance proposals related to revenue distribution. Bifrost aims to lead the pack by delivering a best-in-class service coupled with tangible user benefits.
“We believe this new model will not only enhance the value of our protocol but also create a more engaged and committed community,” said [Lurpis, Co-Founder at Bifrost]. “We could not be more excited to embark on this new chapter with our loyal users.”
About Bifrost
Bifrost is a Liquid Staking app-chain tailored for all blockchains, utilizing decentralized cross-chain interoperability to empower users to earn staking rewards and DeFi yields with flexibility, liquidity, and high security across multiple chains.