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"With 10% inflation a year, do you dare to buy?"

BERA peaked upon launch, connecting all exchanges, including Korean exchanges, reaching a peak of $15.5, and the current price is $8.

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Yesterday's article mentioned that almost all studios were wiped out, with countless accounts banned for no reason. It has now stabilized. Is it time to enter?

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Before entering, you must understand the gameplay of BeraChain, which includes the other two native coins, BGT and Honey. Please read on:

1 "BERA: Gas Token and Network Security"

Core Functions

  • Gas Payment: As the native token of the mainnet, BERA is used to pay for on-chain transaction fees.

  • Node Staking: Validators need to stake 69,420 BERA to run nodes, maintain network security, and earn block rewards (BGT).

  • Burning Mechanism: BGT can be unidirectionally burned at a 1:1 ratio for BERA, but BERA cannot be converted back, ensuring the governance value of BGT is separated from the liquidity of BERA.

User Gameplay

  • Ordinary users can obtain BERA through airdrops, exchange purchases, or burning BGT for daily transactions and paying gas fees.

  • Validators stake BERA to run nodes, earn BGT rewards, and participate in governance distribution.

2 "BGT: Non-Transferable Governance Token"

Core Functions

  • Governance Voting: BGT holders can vote on network proposals (such as the whitelist of collateralized assets for HONEY).

  • Reward Distribution: Users delegate BGT to validators, increasing their block reward weight, and validators then distribute BGT to supported liquidity pools (Reward Vaults).

  • Protocol Revenue: BGT holders can share the fee income from Berachain's native dApps (such as the minting fees of HONEY).

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User Gameplay

  • Liquidity Mining: Users earn BGT by providing liquidity to Berachain's DEX (such as BEX).

  • Delegation and Bribery:

    • Users delegate BGT to validators, who may accept the project team's "bribes" (such as token incentives) and allocate more BGT rewards to specific liquidity pools.

    • The project team attracts users to delegate BGT through bribery, forming a liquidity flywheel (as seen in the collaboration case of Kodiak and Infrared).

  • Exit Mechanism: Users can burn BGT in exchange for BERA, exiting the governance cycle.

3 "HONEY: Native Over-Collateralized Stablecoin"

Core Functions

  • Stable Trading Medium: Pegged to the US dollar, used in DeFi trading, lending, and other scenarios to reduce volatility risks.

  • Minting and Redemption: Users need to collateralize whitelisted assets (such as USDC, PYUSD) to generate HONEY. A fee must be paid upon redemption, and a portion of the fees is distributed to BGT holders.

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User Gameplay

  • Stablecoin Arbitrage: Mint HONEY by collateralizing assets and participate in low-risk yield activities within the ecosystem (such as staking HONEY to earn BGT).

  • Cross-Chain Liquidity: HONEY can serve as an intermediary for cross-chain transactions, such as transferring assets between the Berachain and Cosmos ecosystems.

4 "Synergy of the Three"

  1. Liquidity Flywheel

    1. Users provide liquidity → receive BGT → delegate BGT → validators allocate rewards → attract more liquidity → enhance ecosystem TVL.

  2. Governance and Economic Incentives Binding

    1. The governance rights of BGT are linked to liquidity contributions. The project team needs to attract BGT holders' support through bribery or actual applications, forming decentralized competition.

  3. Capital Efficiency Optimization

    1. BERA focuses on network security and circulation, BGT drives governance and reward allocation, while HONEY provides a stable trading environment, avoiding liquidity lock-up issues common in traditional PoS chains.

End

Currently, the TVL of the bear chain is close to 1.4 billion, ranking 9th among public chains.

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Although the TVL is relatively considerable, the actual application is quite different compared to other chains.

For the three tokens Bera, BGT, and Honey, the potential risks are:

  1. The demand for BGT is strongly tied to the ecosystem's activity. If the ecosystem develops below expectations, it may lead to selling pressure.

  2. HONEY relies on an over-collateralization mechanism. If the price of collateralized assets fluctuates violently, it may trigger a liquidation crisis.

Compared to recently launched popular public chains, Bera has a lower FDV than MOVE and also has corresponding applications, commanding a TVL of 1.4 billion, offering a better cost-performance ratio, but there is still a gap compared to predecessors.

It is advised not to rush; the current market environment is still sluggish. Friends who like bear chains can have a first position, but don't go all in. After all, with 10% inflation a year, plus VC releases, the selling pressure is considerable.

#BERA #Berachain $bera