Bifrost: Cash Flow Driven Rise Flywheel - From Narrative Era to Value Era

After several years of “narrative frenzy” in the encryption industry, the market is entering a brand new phase—the cash flow era. The bubble of conceptual hype is gradually receding, and only projects with sustainable profitability will be the winners of this era.

The narrative comes to an end, and cash flow begins

In the past, encryption projects relied on token presales and airdrops to create short-term hype; however, the industry's focus has now shifted to projects with real cash income. Whether in the primary market or the secondary market, investors now prefer protocols that have clear business models and sustainable cash flow.

In the DeFi and CeFi sectors, projects like AAVE, Hyperliquid, and pump.fun that enhance token value through buyback dividend models have achieved significant valuation premiums.

This marks the shift of the encryption industry from “speculation-driven” to “value-driven”, moving from airdrop bubbles to real business.

Value Capture Innovation: From Governance Buybacks to Staking Profit Sharing

Traditional companies have shareholder dividends, while the value of tokens in encryption projects capturing profits depends on the design of their token economic model.

The core innovation of Bifrost 2.0 lies in: directly feeding back the protocol's cash flow to token holders, achieving a transition from “governance buybacks” to “rigid profit sharing.”

Rigid Repurchase Mechanism

Bifrost will use the treasury income each month to automatically repurchase BNC from the market, processing it at a ratio of 10% for destruction + 90% for profit sharing:

10% destruction brings deflationary effects;

90% of profit sharing is distributed to bbBNC holders, forming a long-term dividend mechanism.

This mechanism eliminates the uncertainty of governance proposals, making profit distribution transparent, rigid, and sustainable.

bbBNC: Dividend Certificate for Long-term Holders

bbBNC is a locked certificate, which users obtain by locking BNC or vBNC. The more BNC or vBNC locked and the longer the duration, the more bbBNC is obtained; as the unlocking period approaches, bbBNC will decay.

This mechanism is similar to Curve's veCRV model, directing more rewards to the true long-term supporters of Bifrost.

Repurchase implementation, profit sharing activation

On November 1, 2025, Bifrost officially launches the token buyback and profit-sharing plan:

Completed the buyback of 955,108 BNC, equivalent to 1.25% of the total supply;

Users can visit bifrost.io/bbbnc

** View repurchase and income records in real-time, transparent and public. **

This marks the official implementation phase of Bifrost's “cash flow dividend mechanism.”

Valuation Anchoring: Underestimated Value Proven by Cash Flow

Bifrost achieved protocol revenue of 1.37 million USD in the past 12 months.

Based on the current BNC price (0.1 USD), the unlocked market value is approximately 7 million USD, with a corresponding price-to-sales ratio (MCap/Revenue) of only 5.6, significantly lower than mainstream DeFi protocols like LIDO (9.8), indicating a significant undervaluation.

This “cash flow anchored” valuation logic makes BNC one of the few encryption assets comparable within the traditional financial analysis framework.

Growth Flywheel: A Positive Cycle Driven by Cash Flow

The growth logic of Bifrost has formed a complete closed loop:

PoS Earnings → Protocol Revenue → Buyback Profit Sharing → Community Growth → Business Expansion → Revenue Increase

Cash flow brings real dividends, community loyalty enhances ecological growth, ecological growth feeds back into income and token value, forming a self-reinforcing growth flywheel.

Future Outlook: From Narrative to Implementation

Currently, the TVL of Bifrost is stable at 100 million dollars, with the minting volume of its core product vDOT increasing by 242% and the number of holders increasing by 82.2%.

Next, the team will launch several new businesses, including vETH 3.0, stablecoin Vault, and a brand new vToken product.

While many projects are still caught in “narrative involution”, Bifrost has proven with cash flow:

True innovation is not about making a bigger pie, but about earning more real money.

Real growth is driven not by hype, but by the accumulation of value.

As the world of encryption enters the “Value Era”, Bifrost is reshaping the business logic and investment trust of encryption protocols with cash flow as its core.