During its latest community call, the web3 derivatives protocol Bifrost teased the launch of the third evolution of Rainbow Boost; its long-term incentive programme.
To date, over 1,400 wallets have participated in the Rainbow Boost campaign; an equivalent of roughly $900,000 in airdropped rewards, and $5million-worth of 77,0000 liquid KSM derivatives (vKSM) minted.
Rainbow Boost 3.0 rewards users who participated in the second batch of Kusama crowdloans – they unlock rewards access by claiming 2000 Raindrops, which will then entitle them to asset airdrops of KILT, KMA, BSX, AIR, HKO and KINT; as well as Bifrost whitelist access to its Back to Asgard NFT collection.
Additionally, as on-chain analysis shows, the second batch of Kusama parachains will release 1,251,097 KSMs (around $70million) unlocked from 65,579 addresses, Bifrost incentivises Kusama crowdloan participants to put their freshly released KSMs to work and mint vKSMs. Users who mint vKSMs can benefit from higher APY, vKSM farming and Rainbow Boost rewards.
“Rainbow Boost helps filter out the most active and value-generating addresses within Bifrost. Whilst Raindrops accumulate within wallets, Dotsama projects can look at the number of Raindrops accumulated as a criterion to find, reward, and give on-chain governance to these trusted wallets,” said Lurpis Wang, the co-founder of Bifrost.
“We are thrilled to see Rainbow Boost 3.0. launching to give users yet another opportunity to show their on-chain worth, accumulate more Raindrops and be rewarded with token airdrops.”
The power of a long-term incentive programme
Rainbow Boost rewards participants for prolonged support and on-chain activity.
Unlike traditional crypto incentive schemes, Bifrost isn’t giving away native tokens but rather rewarding participants with untradable ‘raindrops’ assets, which amount accumulated within a wallet determine the type and value of the later reward.
Bifrost’s solution offers various advantages over the traditional incentive and reward schemes:
- Rainbowboost prevents dumping: The recent crisis of Optimism Network showed how dangerous it is to reward user action directly with the native token since OP token price plummeted over 40 per cent after many wallets dumped their tokens right after receiving the airdrop. Since non-tradable raindrops are limited directly by the Rainbow Boost programme, wallet owners who are looking to get rich quick will remain sorely disappointed as raindrops need to be accumulated for future rewards.
- Rewarding most loyal users: The ability to accumulate raindrops throughout the campaign incentivises long-term activity and interaction with the Bifrost protocol. More raindrops mean more rewards. This way, Bifrost ensured only true believers in their projects are rewarded for their loyalty.
- Governance: Long-term participation and rewarding positive on-chain behaviour generate the most active and trustworthy addresses to emerge. Rainbow Boost allows quantifying on-chain behaviour and seeing which wallet addresses generate the most value on the chain. This dynamic will eventually be reflected in the right to be part of Bifrost governance allowing loyal and long-term value-providing addresses as network owners.
The power of community connections
The third phase of the Rainbow Boost campaign is set to explore additional incentive mechanisms.
In addition to the 2000 raindrops to be claimed from the Kusama crowdloans, participants are able to invite other wallet addresses to take part and claim additional 200 raindrops for both the inviter and the invitee.
The invitation mechanism doesn’t only incentivise more wallet addresses to mint vKSMs but also helps to build an engaged community of recommended addresses joining the Bifrost network, building a strong foundation for a future user-centred governance model.
Building the cross-chain future
Through rewarding and incentivising participants of all six Kusama crowdloans to mint vKSMs, Bifrost is building strong pillars and use cases for vKSM to become a standard within the entire Kusama ecosystem.
The Rainbow Boost campaign is only one of many initiatives that Bifrost is putting in place to drive vKSM adoption and develop vKSM’s utility. All this allows Bifrost to secure a strong foundation to become the hub for cross-chain liquid staking not only on Kusama, Polkadot, and their parachain but on most public PoS protocols.
Image and article originally from thefintechtimes.com. Read the original article here.