Inflation Model

Bifrost
2 min readMay 10, 2024

BFC enables community-driven innovation to benefit global users, relying on contributions from community members, validators, nominators, and developers. This post provides detailed insights into Bifrost Network’s inflation model and estimated BFC supply.

The BFC inflation model aims to incentivize Bifrost Network participants and network expansion. Holding BFC without utilizing them incurs an opportunity cost under the current inflation model, resulting in BFC dilution over time.

Economic research underscores the importance of maintaining an optimal inflation rate to incentivize network participants and drive growth. Lowering the inflation rate may impede growth, while raising it could disrupt the token’s model. As the inflation rate dynamically adjusts based on network status, it remains subject to change through governance, rather than being permanently fixed.

BFC functions as the native currency of the Bifrost Network, operating as a POS network with an inflationary nature. The inflation rate of the Bifrost Network depends on the number of tokens staked, dynamically adjusting to optimize rewards for validators and nominators.

To learn more about our inflation system, please refer to our documentation.

Below is a chart showing the circulating supply of BFC. The left side shows the circulating of BFC based on the status of the Bifrost Network as of May 2024. Meanwhile, the right side displays the maximum supply of BFC. These predictions reflect the circulating supply of BFC, subject to change based on staking and network conditions.

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Bifrost

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