What is Berachain? ‘Proof-of-Liquidity’ Blockchain and Bera AirDrop

Founded by three pseudonymous developers, Berachain, a LAG-1 blockchain that has to compete with Ethereum and Solanalaunches its mainnet on February 6, 2025.

The network uses a new consensus mechanism called Proof-of-Liquidity, aiming to improve the incentives of network participants while improving the chain.

At the launch the new EVM— Identic Blockchain will try to solve ”Cold starting problem“The most early blockchains face and give users and early applications” meaningful interactions “from day one.

Here’s all you need to know.

‘Evm-identical’

Berachain is designed as a “High Performance, EVM-Identic” LAG-1 blockchain, which means it aims to be identical to Ethereum-virtual machine on the execution layer. Therefore, all major upgrades to Ethereum Mainnet, as the upcoming pectra upgrade, can then be replicated on Beracain.

In addition to network upgrades, developers can easily implement all apps or protocols designed for EVM compatible chains directly on Berachain and remove barriers for developers who want to distribute their products on new networks.

Using a new Proof-of-Liquidity Consensus Mechanism that “borrows” from Ethereum’s Proof-of-Stake-Design, the chain launched its first test network in January 2024.

At that time, the Berachats used V1 Artio Testnet Kosmos SDK, but the developers soon realized that Cosmos “couldn’t handle the amount of transactions” that test network received. It eventually led to the creation of its own modular and customized consensus layer, Beonkit. Developed by bearchain, it claims to provide more technical efficiency to EVM chains while moving the network from a monolithic to a modular architecture.

Although the network aims to be almost identical to Ethereum in execution, it varies widely from other blockchains with its proof-of-liquidity consensus mechanism and multitic model.

Proof-of-Liquidity

Bitcoin uses the energy intensive proof-of-work Model while Ethereum uses Proof-of-Stake To validate blocks, but Berachain will use a new consensus mechanism called Proof-of-Liquidity.

Network call Proof-of-Liquidity An “extension” of proof-of-stake that “adapts incentives between validators, applications and users.” With this new consensus mechanism, two tokens – one for gas and network security (BERA) and another are used for governance and reward (BGT).

The cycle starts with a validator that stabbed at least 250,000 Bera -Tokens, similar to how an Ethereum -Validator requires at least 32 ETH. As validators suggest blocks, they then earn rewards from Berachain, paid in BGT.

Validators distribute next time to BGT to Reward vaultor permitted smart contracts where users pay eligible assets such as BERA to earn BGT rewards. To provide liquidity to whitened protocols, the users earn a receipt token, which can then be stabbed inside the reward over, which ultimately gives BGT rewards.

This BGT reward can then be redistributed to the validator of the user’s choice, which potentially increases it for additional rewards.

Berachain tokens

In the end, Berachain has three native tokens: Bera, BGT and Honey, each of which serves a slightly different purpose.

Bera

Bera is the network’s original gas token, similar to how Eth is the native token for Ethereum Blockchain. In other words, to implement transactions on the Beracain network, users need a certain amount of BERA -Tokens to pay for fees. It is also the token required for efforts via Beracain Validators.

Bgt

Bgt is non-transferable And acts as Berchain control and reward token. Unlike Bera or Honey, BGT can only be obtained by attending “Productive activities” within the network. In other words, this means that users can only earn BGT by interacting with protocols and applications that have allowed rewards.

Most often, BGT is acquired by providing liquidity, as with Berachat’s original decentralized exchange, Beraswap. As the government can be used to vote on government proposals individually, or users can delegate it to validators to use on their behalf.

Although BGT is non-transferable, it can be burned in a ratio of 1: 1 for Bera, the original gas token. However, the process only works in a way, which means that users cannot burn BERA to BGT.

HONEY

Eventually Berachain has his own natives StableCOinOr a token designed to be tied to the value of Fiat currency. In this case, honey is softened or between a fixed or floating speed stick to the value of the US dollar.

Berachain stableecoin can be swapped via decentralized exchanges, alias DEXSor can be embossed by depositing permitted collateral in an approved vault.

BERACHAIN ​​AIRDROP

After much teasing, Beracin Advertised Tokenomics And an AirDrop eligibility checker for his Bera AirDrop on February 5th.

The original gas -token project will consist of 500 million Bera -Tokens with an expectation of 10% annual inflation.

From the 500 million tokens, almost 49% are intended for society, which includes allocations to Berachain NFT holders, ecosystem research and development and future initiatives. Of the 48.9% assigned to society, 15.8% or 79 million will be the air -dropped to the community starting on February 6.

Contributors to the Berachain ecosystem and its investors help put together the other 50%assigned to Bera -Token Supply.

About 100 million Bera -Tokens is unlocked at the launch of the network’s mainnet. The other 400 million tokens are according to the same vesting plan: one year cuts, at which time a sixth of the tokens is unlocked and then unlocked the remaining proportion over the following 24 months.

Initiatives before launching

Unlike other blockchain launches, Berachain makes a significant effort to gather liquidity and create incentives before its mainnet launches.

Most notably, the project offered two liquidity stopping initiatives with its pre-launch vault and Boyco, the project’s liquidity platform before launching.

In short, users were able to deposit eligible assets such as Select Stablecoins and Bitcoin and Ethereum to stack rewards prior to the network launch.

This in turn gives a generous headstart of liquidity on the network, giving protocols, applications and users the opportunity to take advantage of these assets from the launch.

“When new blockchains launches, they often struggle to attract liquidity, leaving users not accessing the depth and functionality needed for meaningful interactions,” wrote Pseudonymous Berachain -Team Member Knower Bera. “Without meaningful interactions, these users quickly lose interest, and DAPPS is missing out on an important opportunity for user recording.”

In its pre-launch initiatives overall Berachain more than 3.3 billion dollars in assetswhich, if ranked by the total value locked, would make the fifth largest in that category, in front of blockchains as Basis and The violenceAccording to February -Data from Defillama.

The roots of the berachats

Berachain -network grew out first of a “rebasing” nft collection called Bong Bearswhich debuted at the beginning of 2021. A popular term in computing that made re -based in this sense ensured that holders of Bong Bear NFTs earned additional Bera NFTs via air drops with each “Rebasement.”

This led to the creation of bond bears, boo bears, baby bears, band bears and bit bears. A last Rebase is expected to take place on the Berachain Mainnet.

As a rabid community formed around Bera Nfts, Berachain slowly began to emerge, which ultimately raised more than $ 100 million To build its proof of liquidity blockchain.

“The NFTs came in front of the chain, and the NFT holders have been some of the long-standing and most supportive members of the Berachain community, where countless holders have gone to start their own DAPPs or community initiatives in the ecosystem,” wrote the network In his tokenomics release.

The project was created by three pseudonymous founders-smooth, the bear, Homme Bera and Dev Bear-and all use Bear-themed Monikers.

Edited by Andrew Hayward