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November 7, 2025
Berachain
Berachain
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Berachain (BERA) is an emerging Layer 1 blockchain that combines high-performance infrastructure with a novel proof-of-liquidity (PoL) consensus mechanism. Built using the Cosmos SDK and designed to be Ethereum-compatible through the EVM, Berachain aims to address a persistent challenge in Web3 ecosystems: aligning protocol incentives with sustainable liquidity and governance.
Unlike traditional proof-of-stake chains, where validators are rewarded primarily for staking tokens, Berachain’s model centers around rewarding liquidity providers—those who actually contribute to the DeFi ecosystem. This is what the project means by “Proof of Liquidity”: it’s a consensus model that encourages real usage, not just passive capital.
Berachain has been in the spotlight recently due to a successful private funding round, a highly anticipated mainnet launch, and a rapidly growing community of developers and DeFi-native users. It’s not just the branding (yes, there’s a bear theme throughout) that’s attracting attention—it’s the architecture that makes it a serious contender in the next generation of Layer 1 networks.
Berachain’s PoL consensus model is a game-changer. Here’s the idea: instead of staking tokens in isolation to secure the network, Berachain allows users to contribute to DeFi protocols—like liquidity pools or lending platforms—and receive rewards for that participation. These rewards come in the form of BERA emissions and governance tokens.
The chain uses a tri-token system to make this model work effectively:
This model solves a critical problem in DeFi: traditional staking often locks up tokens and removes them from liquidity. Berachain flips that model, allowing DeFi usage itself to become the means of validation and governance participation. It’s a liquidity-aligned mechanism that could reshape how incentives are structured across protocols.
Berachain stands out in a crowded Layer 1 space for several reasons:
These differentiators make Berachain not just a high-performance chain, but a cultural and technical movement within the Web3 world.
The BERA token is the gas token of the Berachain ecosystem. It powers transactions, pays for computation, and enables smart contract execution on the network. But it’s more than just gas.
BERA is earned through participation in liquidity provisioning and DeFi activity. When users provide assets to Berachain-based protocols, they can earn BGT, which in turn enables them to influence governance decisions—allocating BERA emissions, adjusting protocol rules, and more.
The token’s utility includes:
While BERA has monetary value and is transferable, its design complements the broader tri-token system to keep power and influence decentralized and merit-based.
Berachain introduces a carefully structured tri-token economy designed to align incentives and prevent centralization. Here’s how the three tokens work together:
Why this matters:
This design helps keep Berachain secure, decentralized, and incentivized for long-term growth—not short-term hype.
Users can earn rewards on Berachain in several ways, depending on their level of activity and risk appetite:
Unlike chains that focus solely on staking, Berachain allows users to get involved through actual use of the network—whether they’re providing liquidity, building dApps, or voting on proposals.
The Berachain team operates under pseudonyms but is deeply embedded in the crypto-native builder community. Many of the contributors come from DeFi projects and Layer 1 ecosystems and have experience designing smart contract platforms, liquidity mining systems, and decentralized governance models.
The chain originated from a meme-driven NFT project called Bong Bears, which later evolved into a full-scale Layer 1 initiative. While the origin may sound unconventional, the project’s technical roadmap and funding have been anything but amateur.
In 2024, Berachain raised over $42 million in a private funding round led by Brevan Howard Digital and Polychain Capital, a clear signal that seasoned crypto VCs take the project seriously.
Berachain’s culture is a blend of irreverent meme magic and deep protocol innovation—a combination that’s turning heads across the Web3 space.
Though Berachain is still in the early stages, the ecosystem is already showing signs of vibrant growth—especially among developers, DeFi users, and Web3-native communities.
During its testnet phases (“Artio”), Berachain saw tens of thousands of wallet connections, hundreds of smart contract deployments, and a range of early dApps testing the network’s unique PoL model. This isn’t surprising—builders are attracted to chains where they can benefit directly from protocol liquidity incentives and governance participation.
Key areas of ecosystem growth include:
As the mainnet launch approaches, many expect this activity to snowball. Projects that want to stand out in a DeFi-saturated landscape are finding Berachain’s approach refreshing—and strategically rewarding.
Berachain’s development roadmap is focused on sustainable growth, developer incentives, and mainnet readiness. Here’s a snapshot of what the team has accomplished—and what’s coming next:
Past Milestones:
Upcoming Goals:
Berachain’s roadmap reflects its commitment to long-term decentralization, while staying flexible enough to evolve with its growing community.
Let’s break down how each token works in the Berachain ecosystem and why this structure matters.
BERA (Gas Token)
BERA has utility beyond just gas. It can also be used as a base asset in DEX trading pairs, a collateral option in lending protocols, and possibly in fee models for dApps.
BGT (Governance Token)
This structure helps decentralize power and gives real influence to those who actively contribute liquidity and growth to the network.
HONEY (Reward Token)
Together, these three tokens create a balance between utility (BERA), governance (BGT), and community engagement (HONEY). It’s a more nuanced economy than most blockchains offer—and that complexity may be the key to its long-term sustainability.
Berachain is developer-friendly by design. Its EVM compatibility allows developers to use familiar languages like Solidity, and tools like:
What makes Berachain attractive for builders is its incentive structure. Developers can build apps that not only attract liquidity but also gain visibility through governance proposals—where BGT holders can vote to direct BERA emissions toward dApps they believe in.
In other words, if you build something useful on Berachain, the community can literally vote to support you.
Like any emerging Layer 1 protocol, Berachain faces a few key risks:
That said, Berachain has been cautious in its approach. By building in public, engaging its community, and offering a whitepaper that clearly outlines the mechanics of Proof of Liquidity, the team is proactively addressing these challenges.
2025 will likely be a pivotal year for Berachain. Once the mainnet is live and fully functioning, all eyes will be on how well the tri-token model performs in the wild. Will BGT governance be responsive and effective? Will developers flock to build in a liquidity-aligned system? Will validators maintain security in a non-traditional PoL environment?
Here’s what we might see:
Berachain isn’t trying to be just another Layer 1. It’s aiming to be a DeFi-aligned, governance-forward, culturally rich network where value creators—not just passive stakers—get rewarded.
Berachain’s architecture is built around three key components that serve to enhance performance, ensure sustainability, and encourage long-term participation: the Berachain blockchain, the tri-token system, and the Berachain dApp ecosystem.
This setup prevents governance power from being bought outright—BGT must be earned by supporting the ecosystem, ensuring long-term commitment and decentralization.
Proof of Liquidity is Berachain’s flagship innovation—a consensus mechanism that reimagines how validators and the community support the network. Rather than simply staking tokens to earn rewards, validators in Berachain’s ecosystem must contribute liquidity to the platform’s DeFi applications.
This approach benefits the chain in multiple ways:
PoL solves a key weakness in Proof of Stake systems—namely, that wealth begets control without necessarily increasing utility. Berachain flips this dynamic by making productive liquidity a prerequisite for governance power.
BERA is the native gas token of the Berachain ecosystem. While its primary function is to pay for transaction fees on the network, BERA also plays a role in the broader utility and growth of the ecosystem.
Key use cases include:
Importantly, BERA is fully transferable and serves as the primary economic unit for all value exchanges on the network.
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