BNCPrice

(BNC)

BNC is the native utility token of Bifrost, a specialized liquid staking app-chain. It serves several critical functions: powering the protocol’s governance, paying transaction fees, and acting as an incentive for maintaining the network's liquid staking derivatives, known as vTokens. By holding and using BNC, participants help secure the network and influence the project's development path through decentralized voting.

vTokens are the core product of the Bifrost liquid staking protocol. When a user stakes an asset like DOT or ETH via the platform, they receive a corresponding vToken (such as vDOT or vETH) in return. These are yield-bearing assets that automatically capture staking rewards. Instead of those rewards being distributed manually, the vTokens increase in value relative to the underlying original asset over time. This mechanism allows users to remain liquid and use their staked assets in other DeFi applications while simultaneously earning rewards.

Bifrost recently implemented Tokenomics 2.0, which introduced a Fee Switch mechanism. Under this model, 100% of the protocol’s profits are utilized to buy back BNC from the market. Of these repurchased tokens, 90% are distributed to bbBNC holders as rewards, while the remaining 10% are permanently burned. This creates deflationary pressure on the fixed total supply of 80,000,000 BNC, aligning the protocol's success directly with the token's ecosystem health.

bbBNC is an escrow token designed to reward long-term supporters of the Bifrost ecosystem. To obtain it, users must first liquid-stake their BNC to receive vBNC, and then lock that vBNC for a chosen duration, ranging up to four years. The amount of bbBNC earned is proportional to the amount of vBNC locked and the length of the locking period. Holders of bbBNC receive a share of the protocol revenue, derived from minting commissions, swap fees, and cross-chain transaction fees.

Rewards in the Bifrost system are auto-compounding; the exchange rate of vTokens to the underlying asset increases over time, so users realize rewards by redeeming or swapping their vTokens. To protect users, Bifrost maintains a Slash Insurance Fund. This fund is comprised of 20% of vToken commission fees and a dedicated reserve of 4 million BNC. This reserve is specifically set aside to compensate users in the event of node failures or validator misbehavior that leads to a loss of staked funds.

BNC is available for trading on major cryptocurrency exchanges, including LBank. Within the on-chain ecosystem, it can be traded on decentralized exchanges or through the Bifrost dApp's native swap feature. For cross-chain movement, BNC utilizes Polkadot’s Cross-Chain Message (XCM) format, allowing it to move between parachains. Additionally, through the use of Hyperbridge, Bifrost enables vTokens to move into the Ethereum and EVM-compatible ecosystems, increasing interoperability for liquid staking assets.