$BERA Integrate relevant information to help you analyze correctly and invest rationally.
What is Berachain?
Berachain is a Layer 1 public chain compatible with the Ethereum Virtual Machine (EVM), built on the Cosmos SDK, and adopts a unique 'Proof of Liquidity (PoL)' consensus mechanism. This innovative mechanism not only enhances network security but also ensures liquidity supply, allowing for smoother operations and better resistance to attacks.
Berachain is led by a group of anonymous founders, including Homme Bera, Dev Bear, Papa Bear, and Smokey the Bera, and has been in development since 2021. The team previously launched the NFT project Bong Bears and its related series, and Berachain represents their formal entry into the blockchain infrastructure field.
Berachain announced the completion of a $100 million Series B funding round in April 2024, led by Framework Ventures and Brevan Howard Digital (Abu Dhabi branch); additionally, the project also secured $42 million in private token fundraising led by Polychain Capital in April 2023, showcasing strong financial backing.
Employs a 3-token model: A perfect combination of liquidity and security.
In traditional Proof of Stake (PoS) blockchains, users often have to choose between 'maintaining network security through staking' and 'investing funds in DeFi to earn yields.' However, Berachain's Proof of Liquidity mechanism cleverly combines both — users must first provide liquidity through DeFi protocols to qualify for participation in network security contributions, further enhancing the capital efficiency of the ecosystem.
Berachain utilizes a 3-token design:
Governance token BGT (Berachain Governance Token): Liquidity providers can earn BGT as a reward, but users cannot trade or transfer it; they can only earn it by providing liquidity. BGT can be used for participating in network governance and delegating to validators.
Native token BERA: Used to pay transaction fees (Gas fees) and block rewards. Users can obtain BERA by burning BGT on a 1:1 basis.
Stablecoin HONEY: Berachain's ecosystem stablecoin, pegged to the US dollar, primarily providing users with stable trading opportunities.
Furthermore, validators will reinvest staking rewards back into the Berachain ecosystem to ensure the network maintains high liquidity. Users who stake BGT with validators can not only earn HONEY tokens but can also gain additional yields through a 'bribery' mechanism, creating a unique incentive structure.
It is reported that agreements passed through community governance mechanisms can also be directly integrated into Berachain's liquidity pools, further reducing costs and improving capital efficiency.
The team points out: 'This will be a significant opportunity for validators in the Cosmos ecosystem. Historically, it has been difficult for funds and participants in the EVM space to enter the Cosmos ecosystem, and Berachain is expected to become a bridge between these two major blockchain worlds.'
