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: 80,000,000 BNC with no inflation.
BNC allocation has different proportions of vesting, as shown below:
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
Ecosystem Fund
40,000,000 BNC were allocated to the Ecosystem Fund.
Kusama Crowdloan
3.75%
3,000,000
Polkadot Crowdloan
13.75%
11,000,000
vToken & veBNC Incentive
22.50%
18,000,000
Collator Incentive
5%
4,000,000
Slash Insurance Fund
5%
4,000,000
Kusama Crowdloan
3,000,000 BNC were allocated 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
11,000,000 BNC were allocated 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 & veBNC Incentive (Draft)
18,000,000 BNC were allocated for the vToken & veBNC Incentive. The release of ecosystem distirbution depends on (release in each cycle = TBA blocks about one month):
Please note, vToken/ veBNC Incentive is activated releasing by the following events, “vToken/ veBNC Incentive Distribution” will explain how they are distributed in the following.
New vToken minting
Total volume of staked vToken
veBNC minted volume
Formula
Releasing Cap
In order to prevent the release amount from being too concentrated in a period of time, set a hard cap on the release amount of each cycle.
The capped releasing volume in each cycle: TBA BNC
When the basic release amount + dynamic release amount > release hard cap, release according to the hard cap amount.
Specific release calculation and estimation reference table:
https://docs.google.com/spreadsheets/d/1tv2LA5sYJu_GmoGC-3f--Wibkh1vfzo5qS6ey-uHO4Q/edit?usp=sharing
vToken & veBNC Incentive distribution
The released vToken / veBNC Incentive will be distributed mainly in the following three forms:
vToken LP Farming
vToken Single Token Farming
veBNC Boost Farming
The incentives for these main scenarios are distributed through the Farming pallet, and the distribution process is as follows:
Secondary distribution of the total release incentives in the current cycle:
TBA% vToken LP Farming Incentive
TBA% vToken Single Token Farming Incentive
TBA% veBNC Boost Farming Incentive
Users can use veBNC to vote for the designated Farming Pool, and the veBNC Boost Farming incentive part will distribute incentives based on the voting percentage of each Pool.
The system conducts an incentive statistics and transfer before the start of the next cycle, which base on: the total amount of incentives in the next cycle / 216,000 blocks Calculate the reward release speed of the Farming Pool in the next cycle, and implement related settings through governance.
Distribution Example:
vKSM
1000
500
3x
1.5x
vsKSM - KSM
1000
2000
3x
2x
KSM - BNC
1000
500
3x
1.5x
Collator Incentive
4,000,000 BNC 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
4,000,000 BNC 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% - 4,000,000 BNC 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.
Initial Development Team
16,000,000 BNC 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
1,600,000 BNC 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
8,000,000 BNC 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.
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