A look back at Bifrost’s second mint drop, which netted over $27 million.

Samson Dogo
5 min readMar 16, 2021

The second mint drop by Bifrost has come to an end. The drop was divided into three rounds, each with a cap of 5,000 Ether (ETH) minted, for a total of 15,000 ETH minted. According to the rules, minted Voucher Ether (vETH) is valid for Bifrost Native Coin (BNC) rewards.

250,000 BNC (50 BNC / Mint 1 vETH) in Round 1
150,000 BNC (30 BNC / Mint 1 vETH) in Round 2
Round 3: 100,000 BNC (mint 1 vETH / 20 BNC)

The second mint drop took 118 hours to complete, compared to 216 hours for the first. The locked place hit $24 million after this mint drop minted 15,000 vETH 98 hours ahead of time. It was discovered that 407 addresses participated in the first round, 174 addresses in the second round, and 133 addresses in the third round by contrasting the three rounds of minting data horizontally. The number of addresses that participated in the three rounds of vETH minting and kept vETH during the campaign era, excluding those that participated in multiple rounds was 574.

Bifrost’s second mint drop grew by 538 percent, from 2,788 vETH minted amount in the first mint to 12,212 ETH in the second mint. At this point, Bifrost’s total minted amount had risen to 17,788 ETH, the total locked position of vETH had risen to $27 million, and the number of vETH on-chain users had risen to 932. In addition, the mint drop received 1,588,684 page views, 15,061 unique views, including 13,274 new user views, and users from 136 countries heard about it.

Bifrost conducted a real-world validation of consumer fervor with the mint drop on the eve of the Polkadot and Kusama slot auctions, which culminated in an average lockup of $55 worth of assets per BNC based on a total of 500,000 BNC in the second mint drop case and 15,000 ETH lockups. BNC would have a greater opportunity to lock assets as Bifrost’s testnet and goods are implemented further.

Of necessity, slot bidding will have much more intense project competition, liquidity considerations, revenue comparisons, and other factors to consider when developing parachain slot-bidding strategies than mint drop, but the positive input from the mint drop will also serve as a base for the parachain slot-bidding strategy. However, one of the reference factors for the parachain slot auction strategy would be input from the mint drop.

What is vETH?
vETH, also known as Voucher Ethereum, is a staking derivative for Ethereum 2.0 created by Bifrost. VETH will be released in four stages, ultimately becoming a dual-protocol asset based on ERC-20 and Substrate. It can be exchanged at any time without having to wait for the Eth2 launch, which is expected to take one to two years.

For ETH natively, the current annualized staking reward is 8.4 percent. The staking incentive will be distributed in the form of vETH to vETH holders (must be an ETH primary address, no reward will be available for layer two expansion network addresses).

When vETH reaches Phase 3, the exchange rate will be changed to a variable exchange rate, with the exchange rate fluctuating to settle the staking rewards. Currently, vETH is anchored at a constant one-to-one fixed exchange rate to ETH, pledging 1 ETH to obtain 1 vETH.

VETH is now available for purchase on decentralized exchanges such as Uniswap, Loopring, Sake, and Dodo. The current liquidity depth for vETH/ETH is $2.2 million.

VETH’s price fluctuates depending on market sentiment, but when Eth2 opens for redemption, 1 vETH can be redeemed at a fixed rate of 1 ETH through Bifrost.

The following are the four steps in which vETH will go live:

  1. vETH mining and vETH transition

2. Start a multi-sign deposit to get staking rewards.

3. Substrate dual-protocol assets by converting to ERC-20 (Bifrost mainnet online)

4. After good Eth2 slicing, vETH has begun secure ETH redemption.

vETH is currently in its first level. It has realized closed-loop functions of transactions, staking reward production, and issuance based on the Ethereum ecosystem. CertiK is in charge of auditing the deal. Following the launch of the Bifrost mainnet, vETH will transition to the third level, becoming an ERC-20 token, and Substrate-compatible dual-protocol assets will be able to be used in a variety of parachains while being used on Polkadot.

Progress to Date
Rococo will gradually increase to 200 validators to confirm that the network layer is working well, according to Gavin Wood’s response in the Element channel, and if all goes well, the code will be incorporated into Kusama and deployed, which is expected to be completed in a few weeks.

This also ensures that Bifrost is prepared for the parachain access phase ahead of the Kusama and Polkadot slot auctions, as well as the rollout of Asgard CC4, the last testnet before the mainnet goes live. After receiving funding from NGC, SNZ, CMS, and other early-stage Polkadot organizations, the Bifrost DApp will be available for consumer testing.

Bifrost is expected to be one of the first parachains to receive a slot, thanks to both technology and capital.

Bifrost is expected to be one of the first parachains to receive a slot, thanks to both technology and capital.

About BNC

Bifrost Native Coin (BNC), the Bifrost protocol’s native token, has a total supply of 80 million coins, with the following allocation structure.

Prior to the Bifrost mainnet launch, the BNC incentives for both mint drops are extracted from the reserved section, which is allocated to a given share based on the parachain auction scheme, mint drop incentive strategy, and other factors.

What is Bifrost?
Bifrost is a Polkadot ecosystem DeFi infrastructure protocol that aims to become an infrastructure for providing staking liquidity, with vToken for staking and vsToken for the Polkadot lease offering currently available. It’s also a part of the Web3 Bootcamp and the Substrate Builders Program. In scenarios such as decentralized finance, decentralized applications, decentralized exchanges, and centralized exchanges, vToken may optimize transactions.
To hedge the risk of staking properties, VToken can be used to realize the transfer channel of governance rights such as staking and PLO. Staking proceeds will cover some of the interest in long-term situations, such as when vToken is used as collateral for lending, resulting in low-interest lending.



Samson Dogo

Blockchain and cryptocurrency enthusiast/ambassador