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FROST Token

The FROST token is the governance and utility token of SUBFROST. It is designed to align the incentives of all participants in the network and to capture much of the value created by the SUBFROST protocol.

Learn more about SUBFROST's Proof-of-Stake, here.

Governance​

FROST token holders are the governors of the SUBFROST system. They are responsible for:

  • Managing the dxBTC treasury: FROST holders vote on which yield-generating strategies to deploy the frBTC held in the dxBTC alkane.
  • Setting fees: FROST holders can vote to adjust the fees for wrapping/unwrapping BTC to/from frBTC and for other services on the network.
  • Upgrading the protocol: FROST holders can vote on proposals to upgrade the SUBFROST protocol and its various components.

This decentralized governance model ensures that the SUBFROST protocol is always aligned with the interests of its users and stakeholders.

Value Accrual​

The FROST token is designed to accrue value from the economic activity on the SUBFROST protocol. The primary source of value accrual is from the fees generated at every wrap and unwrap of native BTC and frBTC, with several other future revenue streams.

Currently, a small fee of 0.1% is charged for wrap and unwrap operations.

A portion of these fees are used to buy back FROST tokens from the open market and then burn them, creating a deflationary pressure on the token supply.