Bifrost is upgrading to a new revenue-sharing tokenomics model with Bifrost 2.0, promising improved economic stability and enhanced rewards for token holders. Learn more about how this change will benefit you and the Bifrost ecosystem.
Bifrost, a prominent liquid staking protocol on Polkadot and Kusama, is set to implement a major upgrade to its tokenomics with the Bifrost 2.0 initiative. This new model will allow holders of the native token (BNC) to benefit from the protocol’s sustainable earnings and revenue streams.
The upgrade aims to attract long-term investors and align various stakeholders with the growth and development of the Bifrost ecosystem, while also boosting the protocol’s economic stability and resilience. Currently, Bifrost generates income from transaction fees, system staking, swap fees, and liquid staking commissions.
The revised tokenomics will introduce the bbBNC (Buy Back BNC) token, an updated version of the ve-escrow (veModel) seen in other established protocols. Users can acquire bbBNC by locking Bifrost’s liquid staking token vBNC, which will provide them with staking rewards, governance rights, and a share of the protocol’s revenue. According to Bifrost, 90% of protocol revenue will be directed to bbBNC token holders.
The upgrade is expected to create a growth flywheel that reduces the circulating supply of BNC and potentially increases its value. The new tokenomics model will be implemented in Q4, with educational materials provided to users beforehand to explain BNC 2.0 and bbBNC. Additionally, a vToken summer campaign launching at the end of August will promote staking volume across the vToken types supported by Bifrost.
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This move aligns Bifrost with other leading DeFi projects that have recently made similar governance changes related to revenue distribution. Bifrost aims to set itself apart by offering a top-notch service with significant 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 designed to support various blockchains through decentralized cross-chain interoperability. It enables users to earn staking rewards and DeFi yields while offering flexibility, liquidity, and robust security across multiple blockchain networks.
