$BFR Tokenomics

Migration from BSC to Arbitrum is behind us and now we are completely Arbitrum native. This post deals with detailed $BFR tokenomics and the release schedule for the coming months and years.

About $BFR token

BFR is the native governance and utility token of the Buffer Finance protocol on Arbitrum. It has a maximum total supply of 100 Million tokens. No new tokens can ever be minted.

Token contract address: 0x1A5B0aaF478bf1FDA7b934c76E7692D722982a6D

We will answer the most asked question first- What’s the circulating supply?

The current circulating supply is approximately 28 million this includes all on-time migrations, competition rewards, and token compensation to be paid to the devs and community mods till the end of October 2022.

Token allocation and release schedule

• ~28 million in circulation
• 20 million BFR reserved to be distributed as esBFR
  - Out of 20 million 3 million is reserved for later migrators
  - 2 million is reserved for OTC sales to raise working capital & POL
  - The remaining 15 million esBFR are being emitted at 100,000 esBFR/month to the BFR staking pool. Any changes to the emissions can be done after voting
• 10 million for DEX liquidity will be used for active market making on Uniswap v3 and liquidity mining rewards.
  - All fees earned while making the market will be re-invested in it.
• 10 million community & team compensation
  - To be released at 200,000 $BFR/ month for the next 50 months ( only liquid $BFR emission)
  - Includes team and community member compensation and all previous vesting schedules
• 2 million reward pool to pay keeper network and fund rewards for trading competitions
• 5 million protocol-owned liquidity to enable trading with $BFR tokens
  - PnL of the trader adds to the POL balance (More traders lose more tokens are locked)
  - 50% of the fee generated will be added to the BFR reserve to be sent as esBFR rewards
  - Remaining 50% of the settlement fee with go to the reward pool
• 25 million of the supply will be locked under a 6-month cliff - post cliff period is over the community can vote on what to do with these tokens below are the possibilities
  - Burn all the tokens
  - Lock in POL for trading to allow bigger trade sizes in $BFR
  - many other posibilities

What would be the way forward?

In the coming week, tokens held by the deployer contract will reduce and will be locked in vesting contracts and the esBFR reward distribution pool. An announcement will be shared with the community when all operations related to the vesting and locking of tokens are complete.

At the same time, we will also be distributing the esBFR tokens to later migrators and will be announcing details of a potential OTC deal. You can join Discord or Telegram to stay updated.

Along with the trading activity and fee generation dashboard, we will also be adding a token dashboard where tokens in circulation, tokens staked, tokens in liquidity, and all other important information regarding $BFR can be tracked.