Tokenomics Tweaks paying off in Web3 – Case of BNB…
Web3 protocols have evolved beyond just technical innovation — they’ve also matured in how they design their tokenomics.
Traditionally, many protocols focused on burn mechanisms to increase token value.
The logic is simple:
• reduced supply →
• greater scarcity →
• higher token value (if utility is strong)
A clear example is Binance Smart Chain’s BNB, which has periodically burned tokens while maintaining a supply cap — driving powerful price appreciation during this year’s bull cycle.
I wrote about this in my earlier piece:
👉 BNB’s Top Gun Bull Run: Flying Past ATH into New Crypto Skies
BNB’s tokenomics worked because of:
• high chain adoption
• heavy retail activity
• low fees
• strong DEFI ecosystem (Venus, PancakeSwap)
• whales backing projects
• real utility as a fee token
So demand stayed high while supply reduced — a classic deflationary success story.
🌐 Now enters Bifrost: Web3 Tokenomics aligned with decentralisation
Bifrost takes tokenomics to a new level — one aligned with Web3’s decentralised ethos where the protocol belongs to the community, not a centralized entity.
In decentralised protocols, the community participates in:
• governance
• treasury decisions
• protocol evolution
• incentives
Bifrost’s native token BNC gives holders governance rights and influence in protocol decisions.
And now, Bifrost has refined (revamped, evolved) its tokenomics into what it calls Tokenomics 2.0.
At the heart of this upgrade is bbBNC.
What is bbBNC? A profit-sharing voucher designed for community value..
Screenshot from bbBNC Riders Campaign Page...
bbBNC = Buy Back BNC
It is a time-locked, liquid-staked derivative of BNC(vBNC).
Here’s how it works:
- 100% of Bifrost’s protocol profits → buy back BNC
This injects value derived from Bifrost’s Revenue Profits into BNC token.
- Of the bought-back BNC:
• 90% is distributed to bbBNC holders
• 10% is burned (deflationary mechanism)
So bbBNC holders receive:
• revenue share
• deflationary value boost
• and yield-farming rewards
This creates a token model where Protocol Growth and profits flow to Protocol’s loyalists who have staked their BNC in the form of bbBNC!
🔒 bbBNC = time-locked vBNC (liquid staked BNC)
Know Bifrost Protocol
Bifrost is the only Omni-Staking Liquid Staking Protocol in the Web3 industry.
It issues vTokens (LSDs) for cross-chain staked assets — all in one unified token format because of Substrate.
👉 My article explaining Omni-Staking:
Bifrost: The Only Omni-Staking Protocol with a Unified Token Standard for LSDs
So:
• BNC → liquid staked → becomes vBNC
• vBNC → time-locked → becomes bbBNC
bbBNC captures Bifrost’s profits + gives yield farmers vBNC yields!
bbBNC unlocks after locking period completes – it cannot be transferred – can only be redeemed for vBNC.
How bbBNC Strengthens Decentralisation & Long-Term Commitment
It is clear that through bbBNC Bifrost rewards long term committed community stakeholders with Protocol profits!
bbBNC holders will naturally be interested in Protocol’s organic growth and development than profit short-term from trading activities – whenever the Bull Buzz gets on and investors fancy profiting from token hype.
This strengthens Bifrost’s decentralisation by rewarding community involvement with Protocol as it’s aligned its growth benefits with the economic prosperity of the community.
BNC Utility, Market Share & Why Tokenomics 2.0 Adds Extra Fuel
Bifrost’s analytics show that Bifrost has 64% Market Share! This means Bifrost is a highly adopted protocol for liquid staking Polkadot Ecosystem assets.
As Bifrost is widely used for minting vTokens – utility of BNC grows – held for Protocol Governance Rights, minted into vBNC for Liquid Staking rewards, while the token’s used to incentivise Protocol Liquidity providers, yield farmers, used as payment currency for Protocol gas fees.
So, demand for BNC is already robust and Bifrost’s Tokenomics 2.0 is extra fuel that would facilitate further appreciation of BNC’s value over time.
Add to this – Protocol usage revenues and profits also add value to BNC now with Bifrost’s Tokenomic 2.0 upgrade.
💎 Campaign Spotlight — bbBNC Riders
Bifrost has launched the bbBNC Riders campaign to onboard users into this new tokenomics model.
Rewards include:
• vDOT
• vBNC
• and 200 WAVE lucky draw bonuses
👉 Campaign link: https://wave.bifrost.io/bbbnc
I also explored this in my Publish0x article:
👉 Exploring Bifrost’s Tokenomics 2.0: bbBNC and the Evolution of Profit-Sharing in Web3
🧩 Conclusion
Bifrost’s Tokenomics 2.0 is a Web3-native evolution:
• fully decentralised
• community-profit aligned
• value-capturing
• deflationary
• incentive balanced
It represents how modern Web3 protocols can reward their true stakeholders — the community — through transparent, automated profit-sharing.
This model is not just an upgrade.
It’s a tokenomics prototype for future decentralised protocols.
Image sources: Official Bifrost website, Protocol Documentation, Bifrost dApp UI, and Wave campaign materials.