# Token Distribution
The goal of BNC distribution is to make Bifrost network being more decentralized, build market scale for Staking derivative of vToken, and incentivize a liquid market. Thus every step of BNC distribution will be thinking critically for the health of the Bifrost protocol. To achieve the goal, BNC will reserve 45% tokens as incentives for the entire ecosystem, including vTokenmint, PLO slot auctions, Collator node incentives, Oracle usage and cross-chain costs.
# BNC Stracture
# vToken Holding Incentives
The number of vTokenmint is crucial to the liquidity, vToken coin mining will be a key distribution process for BNC. Please refer to Section vToken Incentives for specific distribution rules and formulas.
# Parachain Lease Offering (PLO)
Only projects that obtain the parachain slot can be called Polkadot parachain, which can realize shared security and relay cross-chain features. According to Polkadot PLO strategy, parachain slots will be released by stages with DOT Staking auction rank. Parachain slots contain 6 to 24 months lease time, and Bifrost plans to bid at least 4 years with 12% of total BNC for the auction of parachain slots. DOTs that perform Bifrost parachain slot lockups will get BNC as reward, while Bifrost will also leverage its business characteristics to provide users with the liquidity of a parachain lockup DOT (tentatively designated as pDOT). At present, there are uncertainties regarding the auction rules of Polkadot parachain, and the specific rules related to PLO participation will be announced after the introduction of the auction rules.
When Bifrost connects to the parallel chain and goes online on the main network, Collator will be supported to provide the service, and to incentivize higher quality and broader range of Collator services. The protocol will incentivize BNC based on the amount of work Collator does to provide the service, and the system will reserve 10% of the ecosystem's BNC for Collator Motivation.
# Slash Insurance Fund
Bifrost will reserve 10% of BNC as Slash system insurance funds to pay out in the event of the failure of Vote Bidder mortgages, public insurance and other risk controls.
# The Unlocking Period
To ensure the development of Bifrost features, online and ecosystem development, different parts of BNC allocation will correspond different percentage of lock-in time, and the team portion of the BNC will also begin linear unlocking six months after Day0 (the day of circulation) and will continue to unlock for two years.