Bifrost 2.0 Unveils New Tokenomics Model to Empower BNC Holders with Protocol Earnings and Revenue Sharing

Bifrost, the leading liquid staking protocol on Polkadot and Kusama, has announced a significant upgrade to its tokenomics model.

Bifrost, a leading liquid staking protocol on Polkadot and Kusama, has announced a major upgrade to its tokenomics model. The new model, which is part of the Bifrost 2.0 initiative, will allow holders of Bifrost’s native token (BNC) to gain exposure to the protocol’s sustainable earnings and revenue.

The move is designed to attract long-term investors and align the various stakeholders in the development and growth of the Bifrost ecosystem, while also 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 modified version of the ve-escrow (veModel) that is favored by several established protocols. Users can obtain bbBNC by locking Bifrost’s liquid staking token vBNC, which will entitle them to benefits such as staking rewards, governance rights, and revenue sharing. According to Bifrost, 90% of protocol revenue will be directed towards bbBNC token-holders.

With the latest update, Bifrost states that a growth flywheel will be created, which will reduce the circulating supply of BNC and drive up its price. The new tokenomics are scheduled to go live in Q4. In the lead-up to the launch, educational materials will be distributed to inform users about BNC 2.0 and bbBNC. Furthermore, a vToken summer campaign is set to be launched at the end of August, which will incentivize staking volume across the different types of vTokens currently supported by Bifrost.

The unveiling of Bifrost 2.0 follows other major DeFi projects that have also recently pursued governance proposals related to revenue distribution. Bifrost aims to lead the pack by delivering a best-in-class service with tangible benefits for its users.

“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.

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