Breaking news! Bifrost co-founder decrypts BNC 2.0 economic model: bbBNC leads the new paradigm of liquid staking

What is bbBNC?

 

Users can obtain vBNC through mobile staking BNC, and then lock this vBNC to obtain bbBNC. The number of bbBNCs obtained by the user depends on the number of locked vBNCs and the length of the lock period.

 

bbBNC is non-transferable and locked vBNC can be redeemed after expiration. However, bbBNC can be redeemed before expiration, but users may face a reduction for redeeming earlier than the set date. The reduction will be fully recognized as agreement revenue and participate in BNC repurchase, destruction, and bbBNC incentives.

 

The benefits of holding bbBNC

 

· Profit distribution : bbBNC holders will share the agreement profits. The distribution ratio depends on the number of bbBNCs held and the length of the lock-up period. The larger the holding and the longer the lock-up period, the higher the profit distribution share obtained.

 

· Staking reward : bbBNC obtained by locking vBNC integrates the staking reward from the Bifrost mobile staking token vBNC.

 

· Governance rights: bbBNC inherits the governance rights of BNC, allowing holders to participate in the governance of the Bifrost protocol.

 

· Enhanced mining : bbBNC holders can receive additional incentives when participating in vToken mining.

 

Bifrost agreement revenue sources

 

· vToken Commission : The protocol earns a commission from staking rewards through its mobile staking service, which is then transferred to the protocol treasury. This is an important part of Bifrost's revenue.

 

· System Staking: This is generated by staking assets within the Bifrost system account.

 

· Tx fees : As an independent application chain, Bifrost charges gas fees for transactions on the Bifrost chain. A portion of these fees is allocated to the Bifrost treasury.

 

· vToken exchange fee : Bifrost has established a dedicated LST stablecoin exchange pool for vToken. Users can exchange vToken in this pool, and the Tx fee paid will mainly belong to the liquidity provider (LP), and will also be shared with bbBNC holders.

 

· Expanded application revenue : Bifrost will also launch various extended application services centered on mobile staking, including LST Leveraged Staking (Loop Stake). Users who use these services will generate revenue for the Bifrost protocol, thereby providing returns for bbBNC holders.

 

· bbBNC early redemption reduction : If bbBNC redeems before maturity, a certain reduction will be generated, and the reduction will be fully included in the agreement revenue.

 

How to get bbBNC:

 

Lock vBNC and obtain bbBNC. The value of bbBNC is proportional to the amount and duration of the pledge (up to 4 years). Each address has a separate expiration date for bbBNC, which cannot be transferred.

 

BNC -> vBNC -> bbBNC

 

The value of bbBNC is a key indicator for participating in dividends. Simply put, the higher the proportion of bbBNC value in the overall, the more share you may receive in various bbBNC holdings.

 

Your bbBNC value will decrease over time, and once the lock-up period ends, it will reach zero. At this point, the vBNC you staked will be unlocked.

 

Redeem bbBNC in advance to unlock vBNC.

 

For users who need to unlock bbBNC immediately to retrieve locked vBNC in advance, Bifrost provides a way to unlock in advance. However, this requires a certain reduction, which is related to the time of early redemption. The relevant formula is as follows:

 

Redemption reduction percentage = ((number of remaining locked blocks + 2,628,000)/10,512,000) ^ 2

The vBNC that users can obtain by unlocking in advance = locked vBNC * (1 - redemption reduction percentage)

 

bbBNC Growth Flywheel

 

Higher BNC value capture leads to higher market value of Bifrost, which promotes more LST application scenarios. More application scenarios will promote the improvement of vToken comprehensive yield (pledge yield + vToken re-pledge yield), resulting in more vToken minting. More vToken minting means more protocol revenue, which will enhance the return of bbBNC holders, further capture more value for BNC, and form a positive growth flywheel. bbBNC is the engine of this growth flywheel, closely integrating the interests of token holders with the Bifrost protocol, providing greater impetus for the common development of the Bifrost protocol.

 

Bifrost 2.0 Progress and Roadmap

 

Bifrost 2.0 upgrade has been officially launched. The development of bbBNC core logic code has been completed and is in the testing phase. Currently, the functions, parameters, and allocation methods of BNC 2.0 are still in the draft stage. Please express your expectations and suggestions here, or you can join the community to get the latest updates.