Bifrost Native Coin

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Discover Bifrost Native Coin's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Bifrost Native Coin?

Bifrost Native Coin (BNC) is the core token of the Bifrost protocol, a decentralized finance (DeFi) project built on Kusama and Polkadot networks. It facilitates coordination between governance token holders and stakeholders, enabling decentralized governance and staking rewards. BNC has a total supply of 80 million tokens with no inflation, and its distribution is designed to incentivize liquidity and staking derivatives markets.

How is Bifrost Native Coin used?

Bifrost Native Coin (BNC) is the core token behind the Bifrost protocol, serving several key functions within the ecosystem. Here are the primary uses of BNC:

  1. Transaction Fees: BNC is used to pay for transaction fees on the Bifrost bridge, facilitating the transfer of assets across different blockchain networks.

  2. Staking and Security: BNC is used to stake the protocol's security assets, ensuring the integrity and stability of the network. This staking process also incentivizes nodes to maintain the network, as they must stake BNC to gain voting power and participate in governance.

  3. Governance: BNC holders can participate in Bifrost's OpenGov voting, allowing them to influence the direction of the protocol and make decisions on the allocation of Treasury funds.

  1. Treasury Management: The BNC used for transaction fees is sent to the Treasury, which can then be spent on various use cases for the Bifrost ecosystem, such as grants, hackathons, integrations, and marketing campaigns, all decided through governance.

  2. vToken Minting: BNC is used to incentivize the minting of vTokens, which are derivatives of other tokens like DOT or ETH. These vTokens can be used within other platforms that accept them, enhancing the utility of the original tokens.

Overall, BNC plays a central role in maintaining the Bifrost network, facilitating transactions, and enabling decentralized governance and decision-making within the ecosystem.

How do I store Bifrost Native Coin?

To store Bifrost Native Coin (BNC) tokens securely, it is recommended to use a hardware wallet. Hardware wallets are offline devices that provide the highest level of security for your cryptocurrencies. Popular options include Ledger and Trezor.

How to buy Bifrost Native Coin?

To buy Bifrost Native Coin (BNC) tokens, follow these steps:

  1. Register on a Centralized Exchange (CEX): Create an account on a reputable CEX that supports BNC trading, such as Kraken, MEXC Global, or KuCoin. You can sign up using your social account if available.

  2. Verify Your Identity: Complete the verification process by providing a government-issued identification document and enabling two-step verification for added security.

  3. Buy a Supported Cryptocurrency: Use fiat to purchase a cryptocurrency that can be easily traded for BNC, such as USDT, ETH, or BNB. This can be done through the CEX's OTC trading service or financial platforms like PayPal or Robinhood.

  1. Transfer Funds to the CEX: Move the purchased cryptocurrency to the CEX that supports BNC trading. If the same CEX supports both the initial purchase and BNC trading, you can skip this step.

  2. Buy BNC: Use the transferred cryptocurrency to buy BNC in the spot market.

  3. Store Your BNC: Once purchased, store your BNC securely in a wallet like Bit2Me, which supports multiple cryptocurrencies and offers various features for managing your assets.

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History of Bifrost Native Coin

Bifrost Native Coin (BNC) is the core token behind the Bifrost protocol, a cross-chain network that provides liquidity to bonding assets. The token plays a crucial role in facilitating coordination between governance token holders and protocol stakeholders, ensuring successful decentralized governance. BNC is used to participate in Bifrost's OpenGov voting and can be used in various capacities, including liquidity commissions, slash collateral, governance vouchers, and capturing staking rewards.

Tokenomics

The total supply of BNC is 80,000,000, with no inflation. The token allocation is divided into several categories, including ecosystem development, initial development team, seed rounds, strategic rounds, private rounds, marketing and community building, mint drops, and the foundation. Each category has different vesting periods, ranging from immediate availability to linear vesting over 24 months.

Key Features
  • Liquidity Commission: BNC is used to pay commissions for transactions, transfers, and other activities within the Bifrost network. These commissions are sent to the Treasury for further administration and distribution.
  • Slash Collateral: Participating nodes must pledge BNC to obtain votes from staking pools, increasing the cost of slashing. The slash collateral amount is adjusted based on the node's performance score.
  • Governance Voucher: BNC holders have a say in Bifrost network governance, including on-chain parliament, technical committee, Treasury allocation, referendums, and node elections.
Market Performance

The market capitalization of BNC is around $11.60 million, with a circulating supply of 38.20 million coins. The token's price is highly volatile, influenced by various factors such as US dollar policy, government regulations, technological progress, market sentiment, and the development of the project's ecology.

Development Team

The Bifrost platform was developed by a team led by Lurpis Wang, consisting of blockchain developers and industry experts. The team has implemented various initiatives, including mint drops, to stimulate vToken minting and incentivize liquidity in the staking derivatives market.

Overall, Bifrost Native Coin is a critical component of the Bifrost protocol, facilitating decentralized governance and incentivizing liquidity in the staking derivatives market.

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How Bifrost Native Coin works

Bifrost Native Coin (BNC) is the native cryptocurrency of the Bifrost platform, a cross-chain network that provides liquidity to bonding assets. The platform aims to maximize the utility of tokens by offering rewards for staking and decentralized finance (DeFi) operations. Here's how BNC works:

Token Overview

BNC is the core token behind the Bifrost protocol, with a total supply of 80 million tokens. It serves multiple purposes within the Bifrost ecosystem, including transfer, transactions, staking, and governance. The token distribution is designed to ensure the development of the platform, with different parts of the allocation having varying lock ratios in time.

Staking and vTokens

Bifrost pays users vTokens (Staking Derivatives Voucher Tokens) for depositing Proof-of-Stake (PoS) tokens on the platform. These vTokens can be used within other platforms that accept them for their operations. For example, users can deposit DOT or ETH and receive vDOT or vETH tokens, which can be used elsewhere.

Governance and Treasury

BNC is used for on-chain governance of the protocol, allowing holders to participate in technical committee decisions, Treasury allocation, node elections, and other governance functions. The Treasury, which holds a portion of the BNC tokens, is used to fund various activities such as grants, hackathons, integrations, and marketing campaigns through governance decisions.

Slash Insurance Fund

The Slash Insurance Fund, also allocated with BNC tokens, is used to compensate for losses when a Slash occurs. The fund is used when the Treasury income is insufficient to cover the losses.

Mint Drop and Incentives

Bifrost runs Mint Drop campaigns to stimulate vToken minting. These campaigns offer BNC incentives to users, which have no vesting period. Additionally, there are incentives for collators who maintain parachains by aggregating transactions and producing state transition proofs.

Vesting and Allocation

The allocation of BNC tokens has different vesting periods for different groups, including the initial development team, seed round investors, strategic round investors, and others. This ensures a gradual release of tokens into the market, preventing concentration and promoting stability.

In summary, BNC is the native token of the Bifrost platform, facilitating liquidity, staking, and governance within the ecosystem. Its distribution and vesting mechanisms are designed to support the growth and decentralization of the platform.

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Bifrost Native Coin's strengths

The strengths of Bifrost Native Coin (BNC) include:

  • Decentralized Governance: BNC facilitates coordination between governance token holders and protocol stakeholders, ensuring decentralized governance and decision-making processes within the Bifrost ecosystem.
  • Liquidity Provision: Bifrost provides liquidity to bonding assets through staking derivatives, allowing users to exchange PoS tokens for vTokens and obtain liquidity and staking rewards.
  • Cross-Chain Functionality: Bifrost operates on both Kusama and Polkadot networks, enabling users to maximize the utility of their tokens across different platforms.
  • Staking Rewards: Users can earn staking rewards through Bifrost's staking system, which incentivizes liquidity provision and node participation.
  • Governance and Treasury Management: BNC is used for on-chain governance, including voting, Treasury allocation, and node election, ensuring that the Bifrost network is managed and developed in a decentralized manner.
  • Security and Risk Management: The Slash Insurance Fund and Slash collateral mechanisms help mitigate risks and ensure the stability of the network.

These strengths position Bifrost Native Coin as a robust and versatile token within the DeFi ecosystem.

Bifrost Native Coin's risks

Bifrost Native Coin (BNC) carries several financial risks. One significant risk is the high risk rating assigned by InvestorsObserver, indicating that a substantial amount of money is required to move the price of the token. Additionally, the token's value can be affected by the performance of the nodes participating in the staking system, as the Slash guarantee will increase or decrease based on the node's performance score. Furthermore, the token's distribution and vesting schedules can impact its liquidity and market stability.

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Did Bifrost Native Coin raise funds?

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Bifrost Native Coin’s team

  • Lurpis Wang: The team behind the Bifrost platform, which includes the Bifrost Native Coin (BNC), is led by Lurpis Wang. This team consists of blockchain developers and industry experts.

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