The original operational funds proposal for Bifrost covering the period from September 2025 to February 2026 was initiated in July 2025, when the DOT price was approximately $4.20. The Bifrost Foundation converts tokens to USD on the 10th of each month to cover expenses in stable fiat currency.
However, significant volatility in the DOT price during this period resulted in substantially lower USD yields than anticipated in the original budget. This shortfall has necessitated a supplementary proposal to cover the USD deficit and ensure uninterrupted operations.
The following table details the monthly conversions:
| Date | USD | DOT Price (USD) | DOT Amount Converted |
|---|---|---|---|
| 2025/9/10 | 93,001.17 | 4.216 | 22059.10104 |
| 2025/10/10 | 93,001.17 | 2.946 | 31568.62525 |
| 2025/11/10 | 93,001.17 | 3.266 | 28475.55726 |
| 2025/12/10 | 93,001.17 | 2.19 | 42466.28767 |
| Total | 372,004.68 | - | 124,569.57 |
To date, 124,569.57 DOT have been consumed for operational expenses. The remaining balance is 8,036.43 DOT (valued at approximately $14,811.55 at current prices).
The total shortfall in USD terms is 171,190.79 USD. This proposal seeks to bridge this gap by requesting supplementary funds in the form of vToken from the treasury.
The supplement will be provided in vMANTA, vASTR, vKSM, and vDOT, valued using 7-day average prices and applicable vToken exchange rates:
| Token | 7-Day Avg Price (USD) | vToken Rate | vToken Amount | USD Value |
|---|---|---|---|---|
| MANTA | 0.0741 | 1.45576 | 150000 | 16180.7724 |
| ASTR | 0.01 | 1.344664 | 1000000 | 13446.64 |
| KSM | 7.05 | 1.695455 | 6500 | 77694.22538 |
| DOT | 1.795 | 1.597598 | 22272 | 63869.15627 |
| Total | - | - | - | 171190.79 |
Does this funding come from protocol revenue? Will it affect the returns for bbBNC holders?
The vTokens requested this time come from protocol revenue accumulated from July 2024 to June 2025, as detailed in the previous proposal. bbBNC’s yield comes from the buy-back of BNC from future Bifrost protocol profits, so this request will NOT affect bbBNC's subsequent revenue.
However, it should be noted that if Bifrost's future protocol revenue declines, resulting in a reduction or loss in Bifrost's profits, no new BNC repurchases will be generated, and the bbBNC yield will also decline.
How can the Bifrost Foundation avoid future losses from exchange rate discrepancies?
Convert protocol revenue exchange from monthly to real-time exchange: Bifrost protocol revenue is currently calculated using real-time commission tokens based on the bbBNC algorithm. However, Bifrost Foundation's USD exchange cycle is monthly, which creates a gap between the protocol's revenue price and the actual exchange price. The development team is working on implementing a real-time USD exchange for protocol revenue to address this discrepancy in the future.
Will Bifrost Foundation's operations be affected by unfavorable market conditions?
No, while a downtrend in token price will indeed affect Bifrost protocol revenue. However, given current market conditions, Bifrost can still generate sufficient protocol revenue, and the vToken issuance continues to grow. Thanks to the team's relentless efforts, the New vToken partnership is about to be announced, expected to bring Bifrost TVL of $10M to $50M in addition.
Of course, we can't rule out extreme market conditions, but the Bifrost Foundation still has over 18 months of runway for operations even if Bifrost protocol revenue comes to zero.
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