Berachain is a high-performance, EVM-identical Layer 1 blockchain that introduces the innovative Proof-of-Liquidity (PoL) consensus mechanism. This unique approach aligns liquidity and security, aiming to create a cooperative economy that rewards working capital and addresses liquidity fragmentation. The native token, BERA, plays a pivotal role in the network's operations, serving as the gas and staking token.
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Launched in early 2025, Berachain was developed to address the gaps between liquidity and security in blockchain ecosystems. The team identified the need for a consensus mechanism that could harmonize these elements, leading to the creation of PoL. The project has garnered support from prominent venture capital firms, including Polychain Capital, Hack VC, and Tribe Capital, among others. Berachain has raised over $140 million in total before its mainnet launch, including a $42 million private token round in April 2023. The project aims to develop a blockchain ecosystem that aligns incentives for security and liquidity at the network level, allowing the liquidity present on the network to also serve as a source of security.
Berachain is an EVM-identical Layer 1 blockchain that utilizes the Proof-of-Liquidity consensus mechanism. This design helps ensure compatibility with existing Ethereum tools and applications, facilitating seamless integration for developers and users. The network's native token, BERA, serves dual purposes:
At the time of writing, the total supply of BERA is 500.4 million tokens. The token has an annual inflation rate of approximately 10%, which may be adjusted through governance decisions. The initial distribution of BERA tokens is as follows:
Berachain operates on the Proof-of-Liquidity consensus mechanism, which aligns liquidity and security by incentivizing liquidity providers and validators. This approach aims to create a cooperative economy that rewards working capital and addresses liquidity fragmentation. The network is EVM-identical, ensuring compatibility with existing Ethereum tools and applications.
Berachain's ecosystem is composed of two separate tokens, each serving different purposes:
The Proof-of-Liquidity model separates the token responsible for gas and security (BERA) from the token used to govern chain rewards and economic incentives (BGT). The separation of concerns creates a unique economic alignment between network participants, encouraging users to delegate their BGT tokens to validators, who then produce blocks based on the weight of the delegated tokens, maximizing value for their delegators.
The BERA token serves multiple functions within the Berachain ecosystem:
Berachain is building a secure and scalable Layer 1 blockchain with a unique Proof-of-Liquidity (PoL) consensus mechanism, connecting decentralized finance with enhanced security and liquidity. With a focus on performance and developer support, it aims to facilitate the growth of DeFi applications within its ecosystem. As its network evolves, Berachain is poised to be a key player in the future of blockchain technology.
Disclaimer: This article is not intended to provide investment, legal, accounting, tax, or any other advice and should not be relied on in that or any other regard. The information contained herein is for informational purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise. Ndax is a member of the Canadian Investor Protection Fund (CIPF). Please refer to the CIPF for coverage qualification criteria.
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Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.