Proposal: Introduce Governance Incentive Mechanism

Summary

This proposal seeks community consensus on whether Bifrost should introduce an explicit governance participation incentive mechanism within the existing on-chain governance framework to enhance participation rates, engagement quality, and decision-making effectiveness.

We are presenting two alternative incentive models to the community and would like to determine the final implementation path through on-chain voting.

Voting Guide

Please vote on one of the following referenda:

• Option A: Governance Participation Affects bbBNC APY

  Referendum link: https://bifrost.subsquare.io/referenda/189

• Option B: Governance Participation Earns Lottery Tickets

  Referendum link: https://bifrost.subsquare.io/referenda/190

Please vote AYE on the option you support, and NAY on the other one.

The winning option will be selected for implementation.

I. Why Introduce Governance Incentives?

At present, governance participation on Bifrost still faces several practical challenges:

• Governance participation for bbBNC holders is not sufficiently intuitive
• Many BNC / vBNC holders have limited awareness of governance entry points and participation value
• There is a noticeable gap between proposal discussion activity and actual voting turnout

At the same time, Bifrost’s tokenomics has entered a phase centered around buybacks and profit sharing. Ensuring that long-term participants also become active governance contributors is now a key challenge in the protocol’s development stage.

Therefore, we aim to achieve the following through product-level governance UX upgrades combined with explicit economic incentives:

• Make governance participation easier and more accessible
• Make governance behavior a meaningful part of the long-term incentive structure of the protocol

II. Product Upgrades

Regardless of which incentive mechanism is selected, the following governance-related product upgrades will be implemented in the Bifrost Dapp.

Key features include:

• Proposal list with voting data overview
• Direct governance participation using bbBNC / vBNC / BNC
• Clear display of active votes and lock status
• If Option A is selected:
  • Display of “Governance Participation vs bbBNC APY”
  • Clear visualization of how current governance activity affects APY ranges
• If Option B is selected:
  • Dedicated pages for lottery ticket accumulation and draws
  • Display of prize pool size, draw frequency, and personal ticket balances

III. Incentive Mechanism Comparison

Please refer to the linked proposals for full details:

Option A: Governance Participation Affects bbBNC APY

Option B: Governance Participation Earns Lottery Tickets

Dimension	Option B	Option A
Incentive Type	Short-term probabilistic rewards	Long-term yield-based incentive
Incentive Strength	Independent reward pool	Directly tied to core bbBNC Yield
Target Users	Broader BNC / vBNC user base	Long-term bbBNC holders and committed participants
Impact on Behavior	Encourages episodic participation	Encourages sustained governance engagement
On-chain Changes Required	No — front-end and campaign configuration only	Yes — bbBNC module and reward logic upgrades
Development Complexity	Low	High
Estimated Time to Launch	2 months	≥ 6 months
Parameter Flexibility	High, adjustable per campaign	Lower after deployment
Short-term Participation Boost	Strong	Limited

Considerations

• If the community prioritizes long-term alignment between governance and economic incentives, and is willing to accept a longer development timeline, Option A provides a more structurally integrated solution.
• If the community prioritizes fast deployment and near-term participation growth, and prefers to test incentive effects quickly with low technical risk, Option B is more suitable as an immediately actionable solution.