Polkadot (DOT) has been one of the most consistent Blockchain networks that have surpassed the market’s expectations for some time now.
As part of its growth, it has officially announced the release of the Bifrost parachain BNC Staking following the completion of the newly upgraded mainnet Collator on March 22.
As a result, users can participate in BNC Staking after registering a delegator and staking the BNC to the Collator to be eligible for a reward on the Bifrost Dapp. Registration is the first step of moving into the Bifrost Dapp before the subsequent reward can be redeemed.
Creating Collator access is the first step toward attaining parachain independence and shared system security. Developers always seek the most viable method in selecting the parachain they would like to build their protocol on.
Introducing Bifrost
Bifrost is a part of the Polkadots parachain designed for liquidity staking.
It announced in a Twitter post the launch of its Collator mainnet access and the BNC staking protocol. The Bifrost Roadmap is a launch plan divided into the test and the formal stages.
The testing stage starts on February 24 and ends on March 11. The Bifrost team carried out a series of tests to ascertain the safety and operational state of the Collator protocol to ensure efficiency before launching to the public.
Coming to the formal stage, every round of the 600 blocks in the operation cycle of the Collator module takes 2 hours to complete. After completing the specified round, a participant is eligible for the reward. Every stage of redeeming the reward is outlined for participants to follow and be guided.
In order to become a mainnet collator of Bifrost, a stake of at least 5000 BNC tokens is required to participate in the block. The 5000 BNC is the main criteria to select the eligibility of developers who show interest in joining the block.
So far, only 16 active Collator positions are open for participants to join. The number is expected to increase every week to 32, and a maximum of 64 seats before the protocol is deemed stable.
Collator Staking and Reward Pattern
The economic model of Bifrost is designed so that there is no room for inflation mechanism about the BNC coins. Furthermore, a percentage (5%) of the total tokens in circulation is kept aside for the Collator incentive building.
The amount set aside for incentive in the first year is 800,000 BNCs, coupled with the earnings of the Collator and Delegator, which is 10%, 80,000 BNC, and 90%, 720,000 BNC, respectively.
Moreover, the Collator is in charge of decentralizing the transaction processes in the Bifrost chain to meet the block collection quota, which is by consensus with the validator on the chain.
However, the reward and staking distribution structure is arranged to avoid duplication of roles and spheres of influence between the Collator, Delegator, and Validator. Every part of the chain is unique in its functions and the assigned sphere of influence.