Bifrost Operating Budget Proposal

Period: September 2025 - February 2026 (6 months)

Executive Summary

This budget proposal outlines the operational costs for Bifrost's continued development and expansion for the six months from September 2025 to February 2026. The proposal aligns with Bifrost's objectives to strengthen its position as the leading liquidity protocol across multiple ecosystems.

Financial Overview

Based on the provided annual figures (July 2024 - June 2025):

• Annual Protocol Fee: $7,709,400
• Annual Protocol Revenue: $1,504,700
• Annual Operating Costs: $1,137,785
• Annual Protocol Profit: $366,915

6-Month Budget Projection

Total Operating Budget Sep 2025 - Feb 2026 (6 months): $558,007

Budget Breakdown

Suggested allocation based on typical DeFi protocol operational structures:

1. Development & Technical Infrastructure (72.4%)

Total: $404,219

Core Team Operations

• Senior Development Team (Backend, Frontend, Blockchain, DevOps)
• Product Management & Design
• Operations & Marketing
• Strategy Design
• Business Development

Technical Development

• Blockchain Infrastructure
  • Pallet Development & Optimization
  • Runtime Architecture & Updates
  • Performance Monitoring & Optimization
• Smart Contract
  • Contract Development & Auditing
  • Testing & Quality Assurance
  • Security Implementation
• Cross-chain Integration
  • Bridge Development & Maintenance
  • Protocol Compatibility Layer
  • Multi-chain Support Implementation
• Liquid Staking Protocol
  • New Blockchain Integration Framework
  • Staking Mechanism Enhancement
  • Validator Management System

2. Infrastructure Maintenance (9.63%)

Total: $53,743

Network Operations

• High-availability RPC Service
• Collator Node Management
• Load Balancing & Scaling

Monitoring & Analytics

• Prometheus Metrics Collection
• Grafana Dashboard Management
• Performance Analytics
• Real-time Alert System

Development Pipeline

• Automated Testing Infrastructure
• Continuous Integration/Deployment
• Quality Assurance Tools
• API Gateway & Documentation

3. Team Collaboration Tools (1.11%)

Total: $6,218

Digital Workspace

• Virtual Office Platform Subscriptions
• Remote Collaboration Tools
• Project Management Software
• Document Management System

Research & Analysis

• Market Intelligence Tools
• Competitive Analysis Platform
• Data Analytics Platform
• Research Database Access

4. Community Operations (7.75%)

Total: $43,300

Community Engagement

• Ambassador Program Management
• Content Creation & Distribution
• Technical Documentation
• Community Education Initiatives

Marketing & Partnerships

• Podcast Production
• Social Media Presence
• Live Streaming Events
• Strategic Partnerships
• Industry Conference Participation
• Online & Offline Meet up

5. Sustainable Development Fund (9.05%)

Total: $50,527

Team Development

• Performance-based Rewards
• Professional Development
• Team Building Activities
• Training Programs

Financial Security

• Emergency Operations Reserve
• Market Volatility Buffer
• Contingency Planning
• Strategic Investment Pool

Expected Outcomes

Technical Achievement

1. Enhanced protocol security and reliability
2. Improved transaction processing efficiency
3. Reduced network latency and costs
4. Expanded cross-chain compatibility

Market Expansion

1. Integration with target ecosystems:
   • Layer 1: Polkadot, Ethereum
   • Layer 2: Arbitrum, Base, Optimism, BSC
   • Parachains: Kusama, Astar, Peaq, Moonbeam, Mythos
2. Increased market presence and adoption

Financial Growth

1. Sustainable TVL growth
2. Diversified revenue streams
3. Optimized operational costs
4. Enhanced BNC utility
5. Upgrade BNC tokenomics

Key Performance Indicators (KPIs)

Technical Metrics

1. Network uptime and reliability
2. Transaction processing speed
3. Smart contract security score
4. Cross-chain transaction volume

Business Metrics

1. Monthly TVL growth rate
2. Protocol revenue trends
3. New ecosystem integrations
4. User acquisition and retention
5. Community engagement levels

Budget Management

Review Process

• Monthly budget tracking and analysis
• Quarterly performance reviews
• Annual strategic planning
• Stakeholder reporting

Adjustment Mechanisms

• Dynamic fund reallocation
• Performance-based adjustments
• Market-responsive modifications
• Emergency fund management

Risk Management Framework

Financial Risk

• Market volatility hedging
• Diversified treasury management
• Emergency fund maintenance

Technical Risk

• Regular security audits
• Penetration testing
• Disaster recovery planning
• Redundancy systems

Operational Risk

• Team redundancy planning
• Documentation requirements
• Process standardization
• Compliance monitoring

Proposal Execution Details:

• Based on the 7-day (7/21 ~ 7/27) average day close price of DOT $4.208, a total of 132,606 DOT
• vDOT redeem price: 1 vDOT = 1.531519 DOT (2025/7/27)
• Request: 83,000 vDOT + 5,490 DOT
• Beneficiary: 133VgJJgp1s9wxLqgCFxYx6T873hZQNchJM9tmbU6NkYaaqW (Bifrost Foundation)

This budget proposal aims to support Bifrost's growth while maintaining operational efficiency and community trust. All figures can be adjusted based on community feedback and changing market conditions.