The leading liquid staking protocol on Polkadot and Kusama, Bifrost, has revealed a major upgrade to its tokenomics model. As a component of the Bifrost 2.0 initiative, the the new model will provide holders of the native token (BNC) with access to the sustainable revenues and earnings of the protocol.
The goal of the transition is to improve the economic stability and durability of the protocol while also drawing in long-term investors and bringing together various stakeholders to support the expansion and growth of the Bifrost ecosystem. Currently, transaction fees, exchange fees, system staking income, and liquid staking commissions are how Bifrost generates revenue.
An important aspect of the new tokenomics model will be the debut of bbBNC (Buy Back BNC), which is an updated ve-escrow (veModel) that is supported by a number of well-known protocols.
By locking Bifrost’s liquid staking token, vBNC, users may acquire bbBNC and have access to features like revenue sharing, governance rights, and staking incentives. 90% of protocol revenue will go toward bbBNC token holders, according to Bifrost.
Lurpis, Co-Founder at Bifrost stated:
“We believe this new model will not only enhance the value of our protocol but also create a more engaged and committed community. We could not be more excited to embark on this new chapter with our loyal users.”
According to Bifrost’s most recent update, a growth flywheel will be developed, lowering the amount of BNC in circulation and raising its price. In Q4, the new tokenomics will take effect. Before then, users will get educational materials to familiarize themselves with bbBNC and BNC 2.0. Furthermore, at the end of August, a vToken summer campaign will begin, offering incentives for staking volume across all vToken types that Bifrost presently supports.
With the release of Bifrost 2.0, the protocol is now in line with other leading DeFi projects that have also lately explored governance proposals concerning revenue distribution. Bifrost wants to remain at the forefront by offering users tangible advantages together with a top-notch service.
