Bifrost Native Token (BNC) and vToken coupon token
INTRODUCING
What is BNC and vToken for? What benefits will it do for users? Join us to find out the following.
Bifrost is a completely decentralized network that standardizes interest generation, settlement and equity retention of Staking assets that can provide liquidity for all types of Staking assets. For now, the PoS consensus asset naturally has the required features. Bifrost will provide liquidity for Staking assets as the market’s entry point and provide the liquidity of vToken derivative Staking to various PoS networks. So what are the main net tokens like BNC and vToken? Join us to find out below.
Bifrost Native Token (BNC)
Bifrost Native Token (BNC) is Bifrost’s main net token, initial total supply is 80000000. Currently, in the Bifrost test network, BNC coupons can be redeemed 1:1 in the mainnet can be redeemed for the previous paragraph of the distribution community. Currently, BNC is not available for the transfer function, up to that point will be divided into four steps: complete PoA start-up, main network launch, Sudo removal and approved transfer proposal.
It’s like the liquidity commission for derivatives. Wire transfers, transactions, mortgages and other acts within the Bifrost network all require a certain commission to be paid in order to maintain the network. BNC used to pay commissions will be sent to the Treasury for further management and distribution. And all token types can pay a commission.
BNC is Slash collateral. Participating nodes will be required to pledge a portion of BNC in order to obtain votes from the Staking pool’s assets, while also increasing Slash’s cost. Slash collateral will be increased or decreased based on the node’s performance score.
BNC can be used on online parliament, technical committee, budget allocation, referendum administration, node election and other chain administration functions, BNC may have authority in network administration Bifrost. A portion of the Staking rewards generated from the Bifrost will be used to buy back BNC and put in the State Treasury.
Part and reserve funds can be adjusted with Bifrost development, but Bifrost will not do an airdrop at zero cost and any incentive will meet the principle of capturing fundamental value.
The vToken’s liquidity is the most important value that Bifrost can offer, 15.2% of the TOTAL BNC total is used to reward users who use vToken.
In the Bifrost economic model, 12. 160,000 BNC (Bifrost Native Coin) accounts for 15.2% of the total amount, which is reserved as a vTokenmint incentive. The incentive interval is set to ten years of linear release, with annual output halving every two years. It is allocated according to the user’s vTokenmint value, to encourage users to mint and hold vToken with administrative, fungible and liquid rights.
COUPON TOKEN (vTOKEN)
Coupon tokens, or vToken, are a general-purpose asset class of Polkadot or Platform Based, created by the user through the Bifrost network using the Staking property. vToken represents the ownership and bonus rights of the original Staking assets. The Staking Bonus created by Staking is an easily replaceable asset that has transaction liquidity, which can unlock the liquidity of the original Staking or even become a new Staking asset to help users perform transactions in leveraged trading. vToken also has six features, including traceability, administration, cross-chain, full reserve, replacement, and full scripting.
How to ensure the creation of decentralized rewards while making the provision of liquidity simpler is questioned by many people. Therefore, vToken’s reward-solving form is designed to be compatible with both centralized and decentralized scenarios.
In centralized scenarios, vToken is available for use or transformation without further development by a third party. For users who store vToken in a centralized hot or cold wallet can still receive a reward generated by vToken without being lost.
This is because vToken removes the traditional form of on-chain transaction payment and applies vTokenmint Price Upp a method of completing the vToken reward settlement. Therefore, in order to avoid the latter user from dividing the user’s reward first, the user entering from different periods will be at the current vTokenmint price.
Reward structure
- 10% for Fund repurchase, regular buyback BNC
- 1% -5% for Slash Insurance, Risk Allocation when Funds mortgaged by Validator are Cut, floating based on Slash history.
- 3% to the Channel Fund, to be issued according to channel contributions.
- Issued to users 82% -86%, flowing into the original Tokemint group and issuing rewards to users through Tokenmint Price UP.
CONTROL YOUR RISK WITH SLASH
Slash is typically designed as a progressive penalty and is only applicable in cases where illegal activities are triggered multiple times, such as a missing block. So Bifrost will list its supported Slash rules in the PoS network, which will warn or punish bidders based on their severity. To become a bidder, a certain amount of BNC will be deposited as Slash insurance and the bidder will be at risk of losing capital due to the participant’s active voting. Therefore, when the Slash occurs, it will be deducted from the BNC committed by the previous contractor.
In the event that the Slash penalty is too large to be covered by all bidders, the Slash penalty will be deducted from the public insurance fund and the Slash risk will be borne by all vToken holders. If the overall Slash reaches 10% of the total Token, the Token protocol enters the emergency stop phase, all initial Token Placement phases will be redeemed. At the same time, the system will stop the functions of auction of voting rights and Deposit, then the price of vTokenmint will not be changed.
Users can always exchange vToken for the original Token, the system will try to find the reason for Slash and prevent further loss. Once the problem is fixed, the protocol can be restarted by referendum.
Both BNC or vToken can bring great value to the Bifrost participant. In addition, they are also considered a part of insurance when risks occur. Hopefully, the above sharing will bring many useful things for you.
Bifrost Website: https://bifrost.finance/
Author: sammiu0612
Email Contact: colettatomika@gmail.com
