Free TON Bridge Makes DeFi Ecosystem More Affordable With Bridge Tokens

[Alex077]

The Free TON Bridge powered by Broxus is a сross-chain asset transfer consisting of a link between ETH and Free TON. This Bridge allows users to move liquidity bi-directionally from the Ethereum blockchain to the Free TON blockchain, where it can be transacted with near-zero fees and at higher speeds.

The Free TON Bridge, like all inter-blockchain bridges in general, is a crucial part of the DeFi ecosystem. Bridges allow funds to flow between blockchains to nourish other DeFi products like DEX and lending.
A decentralized TON Bridge could also be seen as an analogue of a decentralized bank from the business model perspective in the FreeTON network.

The purpose of Bridge tokens
 Bridge tokens constitute the right to vote on business operations as well as the claim to its income.

The main purpose of Bridge tokens is to manage the DAO (decentralized autonomous organization) of the Bridge. The product does not have a single decision-making center. At the same time, it has stakeholders and, in proportion to their stakes, they can cast votes that determine decisions for the Free TON Bridge. Any person who owns Bridge tokens can vote for certain operating decisions.

If a stakeholder has a big enough stake, then they’ll be able to bring proposals to the table for discussion. The minimum stake for bringing forth a proposal is 2% of the total amount of issued tokens.

Bridge tokens are needed in order to participate in Free TON Bridge validation. The Bridge is served by special servers called relays. A relay is a Free TON Bridge validator. Each relay needs to lock in at least 100k Bridge tokens in order to be permitted into an auction. Auctions are the appointments of new relays that happen once a week. There are up to 100 relays selected by the volume of the stake (100k + Bridge tokens). In this case, the stake of any relay that wants to participate in the auction will be locked for a month. This is done so that no one interferes with the stability of the Bridge.

Read more...https://bitcoinist.com/free-ton-bridge-makes-defi-ecosystem-more-affordable-with-bridge-tokens/