# BNC

## Overview

**Bifrost Native Coin (BNC)** is the core token behind the Bifrost protocol. Coordination between governance token holders and protocol stakeholders is critical to successful decentralized governance, and BNC is the vehicle that facilitates this coordination. BNC or veBNC can be used to participate in Bifrost's OpenGov voting.

**Total Supply**: <mark style="color:purple;">80,000,000 BNC with no inflation</mark>.

BNC allocation has different proportions of vesting, as shown below:

| Distribution of Tokens      | Share | Tokens     | Vesting                                                           |
| --------------------------- | ----- | ---------- | ----------------------------------------------------------------- |
| Ecosystem                   | 50%   | 40,000,000 | Locked for governance                                             |
| Initial Dev Team            | 20%   | 16,000,000 | Start vesting at 6 months after TGE, linearly vested in 24 months |
| Seed Round I                | 6%    | 4,800,000  | Vesting 25% at TGE, 75% linearly vested in 10 months              |
| Seed Round II               | 4%    | 3,200,000  | Vesting 25% at TGE, 75% linearly vested in 10 months              |
| Strategic Round             | 2%    | 1,600,000  | Vesting 30% at TGE, 70% linearly vested in 10 months              |
| Private Round               | 3%    | 2,400,000  | Vesting 30% at TGE, 70% linearly vested in 10 months              |
| Marketing & Community Build | 3%    | 2,400,000  | No Locked                                                         |
| Mint Drop                   | 2%    | 1,600,000  | No Locked                                                         |
| Foundation                  | 10%   | 8,000,000  | Locked for governance                                             |

## Vesting

<figure><img src="https://757947912-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJFtVsA5N3spWTWKvFvv0%2Fuploads%2FYMGNe4pvOVvjJiaa0BsE%2Fbnc_vesting_07.png?alt=media&#x26;token=7a9f52ad-f257-40c8-87b3-3b6c7fe3c17e" alt=""><figcaption></figcaption></figure>

## Ecosystem Fund

<mark style="color:purple;">40,000,000 BNC</mark> allocates to the Ecosystem Fund.

<table><thead><tr><th width="278.3333333333333">Distribution of Tokens</th><th width="199">Share</th><th>Tokens</th></tr></thead><tbody><tr><td>Kusama Crowdloan</td><td>3.75%</td><td>3,000,000</td></tr><tr><td>Polkadot Crowdloan</td><td>13.75%</td><td>11,000,000</td></tr><tr><td>vToken &#x26; Protocol Incentive</td><td>22.50%</td><td>18,000,000</td></tr><tr><td>Collator Incentive</td><td>5%</td><td>4,000,000</td></tr><tr><td>Slash Insurance Fund</td><td>5%</td><td>4,000,000</td></tr></tbody></table>

### **Kusama Crowdloan**

<mark style="color:purple;">3,000,000 BNC</mark> allocates for the Kusama Crowdloan, incentivized BNC as reward for Kusama parachain Crwodloan and auction.

Check historical Crowdloan detials on Kusama: <https://kusama.subscan.io/crowdloan>

### **Polkadot Crowdloan**

<mark style="color:purple;">11,000,000 BNC</mark> allocates for the Polkadot Crowdloan, incentivized BNC as reward for Polkadot parachain Crwodloan and auction.

Check historical Crowdloan detials on Polkadot: <https://polkadot.subscan.io/crowdloan>

### **vToken & Protocol Incentive**

<mark style="color:purple;">18,000,000 BNC</mark> allocates for the vToken & protocol Incentive.

The distribution is mainly in the following forms:

* vToken LP Farming
* vToken Single Token Farming
* [bbBNC Boost Farming](https://docs.bifrost.io/core-bbbnc/how-to-maximize-your-bbbnc-yield#boost-your-bbbnc-value-with-lp-and-vtokens)

The incentive proposal takes place in Bifrost OpenGov.

### **Collator Incentive**

<mark style="color:purple;">4,000,000 BNC</mark> were allocated for the Collator Incentive. Parachain collators maintain parachains by aggregating parachain transactions into parachain block candidates and producing state transition proofs (Proof-of-Validity, PoV) for validators. When the reserved BNC incentives are drained, the subsequent incentive will be allocated by governance, from the Treasury income.

### **Slash Insurance Fund**

<mark style="color:purple;">4,000,000 BNC</mark> were allocated for the Slash Insurance Fund.

#### What happens if a slash occurs?

Slash—when a validator’s misbehavior or technical failure causes staked assets to be penalized—is a critical concern in liquid staking. Bifrost has established a comprehensive slashing risk-sharing mechanism:

* 20% of all vToken commission fees are automatically allocated to a public insurance treasury.
* **An additional 5% -** <mark style="color:purple;">4,000,000 BNC</mark> **tokens are reserved as a protocol-level insurance fund.**
* In the event of a slash, the public fund is used first for compensation. If insufficient, the protocol reserve is tapped.
* If both funds are inadequate, the vToken exchange rate is adjusted downward, effectively socializing the loss across all vToken holders.

<figure><img src="https://757947912-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJFtVsA5N3spWTWKvFvv0%2Fuploads%2FJJ3qPVwGoEA3ZxwKW07P%2Fimage.png?alt=media&#x26;token=6e0f15ef-4347-4c9b-b8d7-29364aa7c1dd" alt=""><figcaption></figcaption></figure>

### Initial Development Team

<mark style="color:purple;">16,000,000 BNC</mark> were allocated for the initial development team. The allocation for the initial development team was started linerly unlocking for 2 years since 180 days (half of a year) after TGE (circulation day).

### Mint Drop

<mark style="color:purple;">1,600,000 BNC</mark> were allocated for Mint Drop. "Mint Drop" is a series of campaigns launched by Bifrost to stimulate vToken minting. The BNC incentives for Mint Drop have no vesting.

Bifrost vETH Mintdrop #1: <https://bifrost-finance.medium.com/bifrost-activates-mint-drop-program-today-mint-veth-for-bnc-airdrop-17e07583b4cc>

Bifrost vETH Mintdrop #2: <https://medium.com/bifrost-finance/2nd-veth-mint-drop-is-about-to-begin-f650ba308a78>

Bifrost vsKSM Mintdrop: <https://medium.com/bifrost-finance/bifrost-ksm-slot-bidding-preview-vsksm-mint-drop-is-coming-185be1ecd329>

### Treasury

<mark style="color:purple;">8,000,000 BNC</mark> were allocated for the Treasury. BNC in the treasury can be spent on any relevant use cases of Bifrost ecosystem construction through governance, including but not limited to: Grant, Hackathon, Integration, Marketing Campaign and etc