Bifrost Proposes Governance Incentive Mechanism to Boost On-Chain Participation

Bifrost has released a new governance proposal seeking community consensus on whether to introduce an explicit governance participation incentive mechanism within its existing on-chain governance framework. The initiative aims to improve voter turnout, engagement quality, and overall decision-making efficiency across the protocol.

To ensure transparency and community ownership, Bifrost is presenting two alternative incentive models and allowing token holders to decide the final implementation path through on-chain voting.

Governance Voting Guide

Community members are invited to vote on one of the following referenda:

Option A: Governance Participation Affects bbBNC APY

Option B: Governance Participation Earns Lottery Tickets

Voting instructions:

Vote AYE on the option you support

Vote NAY on the other option

The option receiving majority support will be selected for implementation.

Why Is Bifrost Introducing Governance Incentives?

While Bifrost has an active governance forum and proposal pipeline, several participation challenges remain:

Governance participation for bbBNC holders is not sufficiently intuitive

Many BNC and vBNC holders lack awareness of governance entry points and incentives

A clear gap exists between proposal discussions and actual voting turnout

At the same time, Bifrost’s tokenomics has entered a new phase centered on buybacks and protocol profit sharing. Ensuring that long-term token holders also become active governance participants has become a strategic priority.

By combining product-level UX upgrades with explicit economic incentives, Bifrost aims to:

Lower the barrier to governance participation

Embed governance behavior into the protocol’s long-term incentive structure

Align economic rewards with meaningful community involvement

Governance Product Upgrades (Applies to Both Options)

Regardless of which incentive model is selected, Bifrost will roll out a series of governance-focused product upgrades within the Bifrost Dapp.

Planned features include:

A proposal list with clear voting data and participation metrics

Direct voting using bbBNC, vBNC, or BNC

Transparent display of active votes and token lock status

Additional UI upgrades by option:

If Option A is selected

A “Governance Participation vs bbBNC APY” dashboard

Visualized impact of governance activity on APY ranges

If Option B is selected

Dedicated pages for lottery ticket accumulation and prize draws

Real-time display of prize pool size, draw frequency, and individual ticket balances

Governance Incentive Models: Option A vs Option B

Below is a high-level comparison of the two proposed governance incentive mechanisms

Key Considerations for Voters

Option A offers a deeply integrated, long-term alignment between governance participation and protocol yield, but requires significant development time and on-chain changes.

Option B enables rapid deployment, flexible experimentation, and immediate participation growth with minimal technical risk.

The choice ultimately reflects the community’s preference between long-term structural alignment and short-term participation acceleration.

Final Notes

This proposal marks an important step in Bifrost’s governance evolution, signaling a shift toward stronger alignment between economic incentives, governance responsibility, and long-term protocol sustainability.

Community members are encouraged to review both proposals carefully and participate in the on-chain vote to help shape the future of Bifrost governance.