FROST Token Overview
SUBFROST Protocol Token
FROST
is an integral componant of the SUBFROST Proof-of-Stake, with deflationary mechanics. All protocol fees are used to buy & burn FROST
, driving value to holders by increasing demand and decreasing supply.
Example to illustrate this process:
- A user wraps 1 BTC to
frBTC
and they pay a small fee of 0.10% to do this. - SUBFROST collects this 0.001 BTC fee and automatically buys
FROST
tokens from the open market. - SUBFROST then burns these
FROST
tokens.
Tokenomics: Structured to maximize alignment between incentives and long-term outcomes of SUBFROST and Bitcoin DeFi at large, currently, this 1B FROST
(expected) is allocated in the following ways:
- 15% to early contributors, where equity converts to FROST with a vesting period.
- 85% to team, builder, and community incentive programs.