Bifrost: Cash Flow Driven Rise Flywheel and Value Restructuring in the Encryption Industry

The encryption industry is undergoing a silent transformation.

Once, we talked about “the next tenfold coin”, “revolutionary narratives”, and “airdrop opportunities”. But now, institutional investors are asking: How much money can this project make?

This is not irony, but maturity.

The End of the Narrative Era

In 2024-2025, the encryption industry experienced a subtle turning point. The era of concept hype has officially come to an end, replaced by a more pragmatic era — we call it the cash flow era.

This transformation is traceable. Institutional investors in the primary market have clearly changed their investment direction, with funds no longer flowing to projects that speak of grand visions, but rather to tracks that have a clear profit model: DeFi, CeFi, RWA, stablecoins.

In the secondary market, this signal is more pronounced. Projects that can generate stable cash flow and are willing to use that cash flow to buy back tokens—such as Hyperliquid, pump.fun, and AAVE—have received valuations significantly higher than their peers.

Why? Because cash flow means commitment. It means the project is not just telling a story, but is making money.

The Dilemma of Token Value

But there is a problem here.

Traditional stock investors have the right to dividends - this is natural. But what about holders of encryption tokens? Their rights to returns depend entirely on the design of the project's token economic model.

The reality is harsh: many encryption projects' tokens are completely unrelated to the actual revenue of the protocols. The projects make money, but token holders see no returns. It's like you bought a “membership card” from a company instead of stocks—what the company earns has nothing to do with you.

This is a fundamental issue in the industry.

Two Roads

To solve this problem, there are mainly two paths in the industry:

The first approach: Make tokens a necessity. For example, the Gas fee mechanism of public chains—if you want to use the network, you must pay with the native token. This naturally creates demand for the tokens.

Second Path: Let the project's revenue directly benefit the token holders. This is usually achieved through buybacks or dividends.

Most DeFi projects take the second path.

The Problems of Traditional Buybacks

Currently, the common practice for DeFi projects is as follows:

The project made money → The community initiates a governance proposal → Voting decides whether to buy back → The tokens bought back are either destroyed, deposited into the treasury, or both.

Sounds good, right? But the problem is: this process is full of uncertainty.

When will the buyback happen? How much will be bought back? These are determined by governance. There is no guarantee of profit for token holders. This uncertainty leads to a subtle opposition: the community begins to doubt whether the project team is profiting from an information advantage, while the project team is easily surrounded by short-term speculators.

Long-term supporters have been overwhelmed. Community trust has been eroded.

Bifrost's Answer: Rigid Repurchase

Bifrost 2.0 proposes a different solution: regular rigid repurchase.

What does this mean? Every month, Bifrost will automatically use the profits in the treasury to repurchase BNC tokens from the market. This is not optional, and no voting is required, just like an automatically executed contract.

How are the tokens handled after the buyback? According to the ratio of 10% destruction + 90% distribution:

• 10% Burn enables token deflation, strengthening long-term value expectations.
• 90% allocation to those who lock up tokens for the long term.

This leads to the second innovation: bbBNC.

bbBNC: Redefining Staking

bbBNC is not a tradable token, but a lock-up certificate. You obtain it by locking up BNC or vBNC.

The design here is clever. The amount of bbBNC you receive depends on two factors:

1. How much have you locked —— The more you lock, the more bbBNC you get.
2. How long have you locked it —— The longer you lock, the more bbBNC you get.

You can lock for a maximum of 4 years. But there is a mechanism here: over time, your bbBNC will automatically decay. If you want to maintain maximum returns, you need to renew it regularly.

The brilliance of this design lies in that it filters out the true believers.

Those who are willing to lock up their assets for 4 years are clearly not short-term speculators. They believe in the future of Bifrost. The repurchase profits of Bifrost are prioritized for distribution to these individuals. This is not only fair but also attracts those who genuinely want to contribute to the ecological development.

This model has no precedent in traditional finance, but in the world of encryption, it represents a whole new possibility.

From Commitment to Action

On November 1, 2025, Bifrost launched this mechanism.

So far, they have completed the repurchase of 955,108 BNC, resulting in an equal amount of undistributed earnings. This number accounts for 1.25% of the total supply of BNC.

All repurchase records can be viewed in the Bifrost Dapp. Each repurchase is associated with a corresponding governance proposal. This is “Code is Trust”—no need to trust anyone, just trust the code.

At the same time, the minting of bbBNC has also started. Users holding bbBNC can claim their earnings at any time. If you minted bbBNC at the first opportunity, you can immediately receive a portion of the accumulated distributable earnings.

This is not a promise. This is reality.

Numbers Speak

Now let's take a look at the value of BNC in numbers.

In the encryption industry, the standard method for evaluating token valuation is MarketCap/Revenue —— the ratio of market capitalization to annual revenue. The lower this ratio, the cheaper the token.

The situation with Bifrost is as follows:

• Total Supply of BNC: 80 million coins
• Unlocked Amount: 77.36 million coins (Unlock Rate 96.72%)
• Current Price: 0.1 USD
• Unlocked Market Cap: Approximately 7 million USD
• Revenue in the past 12 months: 1.37 million USD
• Valuation multiple: approximately 5.6 times

What does this number mean?

Take a look at other DeFi projects. The valuation multiple of LIDO is 9.8 times. Most mainstream DeFi projects are at 8 times or more.

And Bifrost is only 5.6 times.

In other words, BNC is severely undervalued.

Flywheel Effect

But why will this undervaluation be corrected? Because Bifrost has already launched a self-reinforcing growth flywheel:

As long as PoS mining continues to generate Staking revenue, Bifrost will have a stable cash inflow. This cash flow guarantees a rigid buyback every month. Buybacks mean dividends. Dividends strengthen the community's loyalty. A more loyal community will participate more actively in ecological construction. Ecological expansion drives business growth. Business growth enhances protocol revenue. Higher revenue supports larger-scale buybacks.

This is a positive cycle.

Moreover, this loop has a key feature: it is automatic and does not rely on anyone's decision.

Why Institutional Investors Pay Attention

This is significant for traditional investors.

Bifrost's clear profit model and continuous dividend mechanism allow traditional investors to evaluate this project using their familiar analytical framework. It's no longer about “how cool this narrative is,” but rather “how much money this project can make.”

This lowers the threshold for institutional capital entry. The influx of institutional capital usually signifies an increase in valuation.

The story of growth continues.

Bifrost's TVL is currently stable at around 100 million USD. But the signs of growth are evident:

• vDOT minting volume increased by 242% in 2025.
• The number of vDOT holders increased by 82.2%

And this is just the beginning. The Bifrost project plans to launch more products: vETH 3.0 for EVM users, a stablecoin Vault, and a brand new vToken.

Every new product means more cash flow, more buybacks, and more dividends. The flywheel is accelerating.

The Beginning of an Era

If the first half of the encryption industry is “narrative and speculation”, then the second half is “cash flow and implementation”.

Bifrost is reshaping the rules of the game in this industry in three ways:

1. Break the black box of governance with rigid profit sharing.
2. Rebuilding community trust with transparent buybacks
3. Use Profit Anchoring to lower the investment threshold

What is the result? The BNC token possesses both the value certainty of traditional assets and the ecological growth of encryption assets.

Final Words

As more and more projects fall into “narrative involution”, Bifrost has already proven a simple truth with cash flow:

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

The real growth flywheel is not driven by hype, but by value.

For investors, choosing Bifrost is not just about selecting an undervalued token, but also about choosing a direction—an era rooted in profit and value.

This era is slowly unfolding from the cash flow of Bifrost.