Berachain Launches Liquidity Proof (PoL) System
Compatible with the Ethereum Virtual Machine (EVM), Layer 1 blockchain Berachain is launching its Liquidity Proof (PoL) system today, marking the first phase of its on-chain governance.
The PoL system aims to decentralize the supply of Berachain’s governance token BGT, allowing users to participate in blockchain governance, initially rolled out only in the BEX (Berachain’s native decentralized exchange) liquidity pool. The Berachain team stated in an announcement released last weekend that the first batch of reward vaults outside of the existing BEX pool will officially go live, enabling more decentralized applications (dApps) to compete for BGT emissions and directing rewards straight to validators and users.
The initial whitelist reward vaults focus on DEX liquidity pools, including those on BEX as well as other DEXs within the Berachain ecosystem. In subsequent phases, the scope will expand to non-DEX contracts covering applications such as tokenized real-world assets (RWA), decentralized finance (DeFi), and gaming. Berachain’s announcement listed several liquidity pools that have been approved for BGT emissions.
Berachain’s PoL mechanism encourages users to provide liquidity to the network while ensuring that these assets remain usable. The blockchain utilizes three types of tokens: $BERA, which is the gas token used for transaction fees and validator staking; the governance token $BGT, which is a non-transferable soul-bound token primarily obtained through providing liquidity and used for governance and reward distribution; and $HONEY, which is Berachain’s fully collateralized native stablecoin, maintaining a soft peg to the US dollar.
Berachain initially launched its liquidity platform Boyco before the mainnet went live, providing liquidity for applications within the ecosystem, with its mainnet launching in early February of this year.
