finbold.com
Bifrost, a leading liquid staking protocol on Polkadot (DOT) and Kusama (KSM), is introducing a new revenue-sharing model as part of its Bifrost 2.0 initiative, according to the latest information shared with Finbold on August 13.
The new approach allows Bifrost token (BNC) holders to tap into the protocol’s sustainable earnings and revenue streams.
Bolstering economic stability on Bifrost
The shift to revenue-sharing tokenomics is expected to attract more long-term investors and engage stakeholders in the ongoing growth and development of the Bifrost ecosystem.
Likewise, it aims to improve the protocol’s economic stability and resilience.
Bifrost currently generates revenue from transaction and swap fees as well as system staking income and liquid staking commissions.
The new tokenomics model will see the introduction of bbBNC (Buy Back BNC), a new and improved version of the ve-escrow (veModel) that users can acquire by locking Bifrost’s liquid staking token, vBNC.
In return, users will receive staking rewards, governance rights, and a share in the protocol’s revenue 90% of which will be directed to bbBNC holders.
The future of Bifrost’s DeFi initiative
Bifrost anticipates the update will reduce the circulating supply of BNC and increase its value.
Lurpis, Co-Founder of Bifrost, also believes the new mode will lead to a more committed community:
“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.”
The new tokenomics model is set to roll out in Q4 2024, accompanied by educational materials to guide users through the changes.
Additionally, Bifrost plans to launch a vToken campaign at the end of August to boost staking volume across the vToken types it currently supports.
This move aligns with Bifrost’s broader decentralized finance (DeFi) strategy and projects that have recently adopted new governance proposals in regard to revenue distribution.