Treasury Proposal | June 2026
Proposer: Tyrone - Bifrost
Bifrost successfully completed its KSM liquidity loan (Referendum #477). Over the 18-month period from Dec 2024 to May 2026, the 50,000 KSM loan generated 3,637.98 KSM in interest (blended APR: 4.85%), and Bifrost distributed 85,568.9838 BNC (~$7,950) in liquidity incentives to the vKSM-KSM pool.
Bifrost now proposes to:
| Item | Value | Notes |
|---|---|---|
| Principal | ||
| Total loan amount | 50,000 KSM | |
| Liquidity Pool Deployment | ||
| Minted as vKSM (liquid staking) | 25,000 KSM | 50% in pool — generates staking yield |
| Deployed as liquidity | 25,000 KSM | 50% in pool — does not generate staking yield |
| Returns (Dec 2024 – May 2026) | ||
| Total interest earned | 3,637.98 KSM | |
| Blended APR | 4.85% |
A total of 50,000 KSM was borrowed and deployed in vKSM/KSM liquidity: 25,000 KSM (50%) was minted into vKSM, while the remaining 25,000 KSM (50%) was deployed in the stable pool against vKSM. Over the 18-month period, the position generated 3,637.98 KSM in total interest, reflecting a blended APR of 4.85%.
| Item | Value | Value in USD |
|---|---|---|
| Liquidity Incentives (BNC) | ||
| Total BNC rewarded (Dec 2024 – May 2026) | 85,568.9838 BNC | ~$7,950 based on 1-yr avg. price |
Over the 18-month loan period, Bifrost distributed a total of 85,568.9838 BNC (~$7,950) in liquidity incentives to the vKSM-KSM pool — reflecting Bifrost's continued commitment to deepening KSM liquid staking liquidity throughout the loan term.
Bifrost commits to repaying the interest in full to the Kusama Treasury upon execution of the pending vKSM unstaking referendum.
| Item | Value | Notes |
|---|---|---|
| Principal | 50,000 KSM | Propose to roll into the next 18-month term |
| Interest | 3,637.98 KSM | To be paid to Treasury upon execution of Referendum #139 |
The 3,637.98 KSM interest is currently being unstaked from vKSM under Bifrost-Kusama Referendum #139, expected to complete on June 23, 2026, after which it will be transferred directly to the Kusama Treasury.
| Parameter | Next Term | Notes |
|---|---|---|
| Loan amount | 50,000 KSM | Renewal of existing loan |
| Loan duration | 18 months from enactment | Repayment due 18 months after enactment; specific date to be confirmed once enactment occurs |
| Blended interest rate | ~2% per annum (~3% cumulative over the 18-month term) | Contingent on Kusama staking APY ~4% |
| vKSM allocation | 50% of principal | 25,000 KSM minted as vKSM |
| Liquidity allocation | 50% of principal | 25,000 KSM deployed to vKSM-KSM pool |
| Commission | None | Bifrost will NOT take any commission from this loan |
| Repayment | Principal + interest at maturity | Full repayment due 18 months after enactment |
The blended interest rate for the next term is projected at approximately 2% per annum (~3% cumulative over the 18-month term), and Bifrost will NOT take any commission from it. This projection is based on the 25,000 KSM minted as vKSM (50% of principal) earning an assumed Kusama staking APY of ~4%; the remaining 25,000 KSM deployed to the vKSM-KSM liquidity pool does not generate staking yield. Actual returns will vary with Kusama network staking yields, which fluctuate with inflation, validator commission rates, and total stake participation.
Beyond liquidity and yield, vKSM carries full Kusama OpenGov participation rights. This section outlines vKSM's governance utility and clarifies how voting rights are handled for the vKSM minted under this loan.
vKSM holders can participate directly in Kusama on-chain governance. Since the KSM underlying vKSM is staked via Bifrost's sovereign address and its derived keyless addresses on Kusama, these addresses carry full governance voting rights. Through the Bifrost DApp, vKSM holders can:
This means vKSM holders do not sacrifice governance rights when liquid-staking KSM.
Bifrost introduces a governance layer: BNC holders can direct the voting rights of vKSM that has been delegated to Bifrost but whose holders have not cast a vote themselves.
Specifically:
This feature meaningfully increases Kusama governance participation and gives BNC holders a direct stake in the direction of the Kusama ecosystem — creating a deeper, more organic alignment between Bifrost and Kusama governance.
Reference: docs.bifrost.io/faq/what-is-lst-governance
The 25,000 vKSM minted under this loan and deployed into the vKSM-KSM liquidity pool will be held under Bifrost Treasury custody and will not participate in the delegated voting mechanism described in Section 5.2 — it is excluded from Kusama OpenGov voting entirely (neither voted directly by Bifrost nor delegated under BNC governance), avoiding any appearance of loan-derived capital being used to influence on-chain governance outcomes.
Kusama
Bifrost has brought a total income of 8,370.5523 KSM to the Kusama Treasury to date; upon completion of the pending repayment above, cumulative income will rise to approximately 12,008.5323 KSM.
Polkadot
Treasury Proposal | June 2026
Proposer: Tyrone - Bifrost
Bifrost successfully completed its KSM liquidity loan (Referendum #477). Over the 18-month period from Dec 2024 to May 2026, the 50,000 KSM loan generated 3,637.98 KSM in interest (blended APR: 4.85%), and Bifrost distributed 85,568.9838 BNC (~$7,950) in liquidity incentives to the vKSM-KSM pool.
Bifrost now proposes to:
| Item | Value | Notes |
|---|---|---|
| Principal | ||
| Total loan amount | 50,000 KSM | |
| Liquidity Pool Deployment | ||
| Minted as vKSM (liquid staking) | 25,000 KSM | 50% in pool — generates staking yield |
| Deployed as liquidity | 25,000 KSM | 50% in pool — does not generate staking yield |
| Returns (Dec 2024 – May 2026) | ||
| Total interest earned | 3,637.98 KSM | |
| Blended APR | 4.85% |
A total of 50,000 KSM was borrowed and deployed in vKSM/KSM liquidity: 25,000 KSM (50%) was minted into vKSM, while the remaining 25,000 KSM (50%) was deployed in the stable pool against vKSM. Over the 18-month period, the position generated 3,637.98 KSM in total interest, reflecting a blended APR of 4.85%.
| Item | Value | Value in USD |
|---|---|---|
| Liquidity Incentives (BNC) | ||
| Total BNC rewarded (Dec 2024 – May 2026) | 85,568.9838 BNC | ~$7,950 based on 1-yr avg. price |
Over the 18-month loan period, Bifrost distributed a total of 85,568.9838 BNC (~$7,950) in liquidity incentives to the vKSM-KSM pool — reflecting Bifrost's continued commitment to deepening KSM liquid staking liquidity throughout the loan term.
Bifrost commits to repaying the interest in full to the Kusama Treasury upon execution of the pending vKSM unstaking referendum.
| Item | Value | Notes |
|---|---|---|
| Principal | 50,000 KSM | Propose to roll into the next 18-month term |
| Interest | 3,637.98 KSM | To be paid to Treasury upon execution of Referendum #139 |
The 3,637.98 KSM interest is currently being unstaked from vKSM under Bifrost-Kusama Referendum #139, expected to complete on June 23, 2026, after which it will be transferred directly to the Kusama Treasury.
| Parameter | Next Term | Notes |
|---|---|---|
| Loan amount | 50,000 KSM | Renewal of existing loan |
| Loan duration | 18 months from enactment | Repayment due 18 months after enactment; specific date to be confirmed once enactment occurs |
| Blended interest rate | ~2% per annum (~3% cumulative over the 18-month term) | Contingent on Kusama staking APY ~4% |
| vKSM allocation | 50% of principal | 25,000 KSM minted as vKSM |
| Liquidity allocation | 50% of principal | 25,000 KSM deployed to vKSM-KSM pool |
| Commission | None | Bifrost will NOT take any commission from this loan |
| Repayment | Principal + interest at maturity | Full repayment due 18 months after enactment |
The blended interest rate for the next term is projected at approximately 2% per annum (~3% cumulative over the 18-month term), and Bifrost will NOT take any commission from it. This projection is based on the 25,000 KSM minted as vKSM (50% of principal) earning an assumed Kusama staking APY of ~4%; the remaining 25,000 KSM deployed to the vKSM-KSM liquidity pool does not generate staking yield. Actual returns will vary with Kusama network staking yields, which fluctuate with inflation, validator commission rates, and total stake participation.
Beyond liquidity and yield, vKSM carries full Kusama OpenGov participation rights. This section outlines vKSM's governance utility and clarifies how voting rights are handled for the vKSM minted under this loan.
vKSM holders can participate directly in Kusama on-chain governance. Since the KSM underlying vKSM is staked via Bifrost's sovereign address and its derived keyless addresses on Kusama, these addresses carry full governance voting rights. Through the Bifrost DApp, vKSM holders can:
This means vKSM holders do not sacrifice governance rights when liquid-staking KSM.
Bifrost introduces a governance layer: BNC holders can direct the voting rights of vKSM that has been delegated to Bifrost but whose holders have not cast a vote themselves.
Specifically:
This feature meaningfully increases Kusama governance participation and gives BNC holders a direct stake in the direction of the Kusama ecosystem — creating a deeper, more organic alignment between Bifrost and Kusama governance.
Reference: docs.bifrost.io/faq/what-is-lst-governance
The 25,000 vKSM minted under this loan and deployed into the vKSM-KSM liquidity pool will be held under Bifrost Treasury custody and will not participate in the delegated voting mechanism described in Section 5.2 — it is excluded from Kusama OpenGov voting entirely (neither voted directly by Bifrost nor delegated under BNC governance), avoiding any appearance of loan-derived capital being used to influence on-chain governance outcomes.
Kusama
Bifrost has brought a total income of 8,370.5523 KSM to the Kusama Treasury to date; upon completion of the pending repayment above, cumulative income will rise to approximately 12,008.5323 KSM.
Polkadot
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