Bifrost, the leading liquid staking protocol on Polkadot and Kusama, has unveiled a significant upgrade to its tokenomics model as part of the Bifrost 2.0 initiative.
This upgrade introduces a revenue-sharing model aimed at attracting long-term investors and enhancing the economic stability of the Bifrost ecosystem.
The new model will allow holders of Bifrost’s native token, BNC, to gain exposure to the protocol’s sustainable earnings and revenue.
Key features of the new tokenomics model
The cornerstone of the Bifrost 2.0 upgrade is the introduction of bbBNC (Buy Back BNC), a revised version of the ve-escrow (veModel) favoured by various established protocols.
Users can obtain bbBNC by locking Bifrost’s liquid staking token, vBNC, which will provide them with several benefits, including staking rewards, governance rights, and revenue sharing.
According to Bifrost, 90% of the protocol’s revenue will be directed toward bbBNC token holders.
This transition is designed to create a growth flywheel effect, reducing the circulating supply of BNC and driving up its price. The new tokenomics model is set to take effect in Q4 of this year.
Before the transition, Bifrost plans to release educational materials to inform users about BNC 2.0 and bbBNC.
Additionally, a vToken summer campaign will be launched at the end of August to incentivize staking volume across the various vToken types currently supported by Bifrost.
Alignment with other leading DeFi projects
The unveiling of Bifrost 2.0 aligns the protocol with other leading DeFi projects that have recently pursued governance proposals related to revenue distribution.
By introducing this revenue-sharing model, Bifrost aims to lead the DeFi space by providing best-in-class services and tangible benefits to its users.
Lurpis, Co-Founder of Bifrost, expressed excitement about the new chapter for the protocol and its community.
We believe this new model will not only enhance the value of our protocol but also create a more engaged and committed community.
The move to a revenue-sharing model marks a significant milestone for Bifrost as it continues to evolve and adapt to the dynamic DeFi landscape.
By aligning the interests of multiple stakeholders and offering sustainable earnings to token holders, Bifrost 2.0 is poised to strengthen the protocol’s position within the broader blockchain ecosystem.
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