Bifrost, the Liquid Staking pioneer on Polkadot, is entering a new phase with the launch of its Fee Switch and the introduction of BuyBack BNC (bbBNC) — an upgraded tokenomics model designed to convert protocol revenue into tangible value for holders.
Why Bifrost is Upgrading
For years, $BNC powered governance, covered transaction fees, funded treasury spending, and secured slashing insurance. While it gave holders voting rights, it lacked value capture — a common issue for DeFi governance tokens after the 2021 DeFi Summer. Without tangible returns, tokens risk losing long-term value.
Bifrost is now adopting a flywheel model, turning protocol revenue into buybacks and reward distribution. This upgrade ensures that $BNC holders benefit directly from the protocol’s growth.
Revenue Distribution: How BuyBack BNC Works
Under the new model:
100% of protocol profits are used to buy back BNC tokens.
90% of the purchased tokens are redistributed to participants.
10% are permanently burned, reducing supply and enhancing long-term value.
This approach turns Bifrost’s protocol growth into sustainable value for every participant.
Sources of Revenue
Bifrost generates consistent on-chain revenue from multiple sources:
vToken staking commissions
System staking yield
Transaction fees
vToken swap fees
Expanded application revenue
bbBNC early redemption slashing
The result is real income, real buybacks, real value for BNC holders.
How to Earn with bbBNC
Users can participate in the BuyBack BNC system by locking their vBNC, Bifrost’s LST-native token. Locking vBNC mints bbBNC (BuyBack BNC) — an escrow token representing your share of the protocol’s profit cycle.
The amount of bbBNC you receive depends on:
How much vBNC you lock
How long you lock it
Longer lock periods yield higher bbBNC value, creating a direct link between user commitment and returns.
This mechanism transforms protocol revenue into sustainable value, rewarding participants for their engagement and supporting the long-term growth of Bifrost.
Next Steps
Bifrost will soon release a full bbBNC participation guide, including the locking, claiming, and exit process. This will provide users with a clear, step-by-step interface to maximize their rewards.
Stay tuned for the next update to learn how to participate in BuyBack BNC and secure your share of Bifrost’s protocol revenue.
