- Summary:
- Bifrost has rolled out the third instalment of its Rainbow Boost incentives program. We discuss how it works and what’s in it for users.
Bifrost, a web3 derivatives protocol, has launched the third round of its user rewards program. The Rainbow Boost incentive program is a long-term effort by the company to increase on-chain activities. The Bifrost Rainbow Boost program identifies the most valuable addresses in terms of their activity and generation of value.
Aside from Rainbow Boost, Bifrost is launching several other campaigns to increase the use of vKSM. With these factors in place, Bifrost hopes to establish itself as the cross-chain liquidity staker hub.
What’s in it for users?
Rainbow Boost 3 rewards Kusama crowdloans participants who participated in the second instalment of the loans. By claiming 2000 Raindrops, users can gain entry to the rewards section. The Kusama Crowdloans are where you can claim the 2,000 Raindrops worth of rewards. The users will then be eligible for asset airdrops of KILT, KMA, BSX, AIR, HKO, and KIN. In addition, they are granted whitelist access to the exclusive Back to Asgard NFT collection held by Bifrost.
As a bonus, participants can invite other wallet addresses to participate and claim an additional 200 Raindrops. Both the inviter and the invitee gets 200 Raindrops. The invitation system encourages the minting of vKSMs by more wallet addresses. Also, this helps develop a strong foundation for a future user-centered governance model by encouraging trusted and recommended addresses to join Bifrost’s network of members.
Rather than distributing native tokens, the Bifrost platform is rewarding users with non-tradable ‘Raindrops’ assets instead. The type and value of the subsequent award depends on the wallet’s total balance. When compared to more traditional methods of motivating employees, Bifrost’s system has distinct advantages. Raindrops accumulated in wallets can be used as an indicator by Dotsama projects to identify trustworthy wallets, reward them, and grant them access to on-chain governance.
In-build mechanisms for protecting the Bifrost network
With the Bifrost protocol, the most dedicated users receive incentives to encourage them to stay active and engaged over the long term. Users can only earn extra rewards by accumulating more Raindrops. As a result, Bifrost was able to ensure that only those who were truly committed to their projects received rewards.
It is also important to note that wallet owners with a “get-rich-quick and dump” mentality will not be able to take advantage of the Bifrost program. That is because users must accumulate Raindrops before they can redeem their rewards. This ensures that Bifrost does not suffer the same fate as Optimism Network.
OP token prices fell by more than 40% after a large number of wallets sold their tokens immediately after receiving them as part of an airdrop. That demonstrated the dangers of paying users with tokens that are native to the platform.
Finally, the most active and trustworthy wallet addresses develop from long-term engagement and rewarding positive on-chain activity. Rainbow Boost enables the quantification of on-chain activities and the identification of wallet addresses that contribute the most to the overall value of the chain. The right to participate in Bifrost governance will eventually reflect this dynamic.