Berachain is initiating the next stage of its proof-of-liquidity framework, broadening governance and emissions beyond its original BEX pools.
Previously, the rewards were exclusively distributed through Berachain’s (BERA) own exchange, BEX. However, starting on March 24, other decentralized applications will be able to seek incentives through newly established reward vaults, as detailed in Berachain’s recent update. This initiative aims to enhance liquidity by attracting new projects.
The initial vault collection includes liquidity pools from various decentralized finance platforms, with additional options to be introduced in the future. This development promotes greater transparency, empowering users in their control over incentive distribution and creating healthy competition among projects vying for rewards.
In contrast to traditional proof-of-stake blockchains, where users lock their tokens for security and limit network activity, Berachain’s PoL model keeps assets actively engaged in DeFi. This ensures that tokens aren’t tied down and remain accessible for lending or trading.
Berachain’s structure guarantees that validators return a portion of their rewards to the network rather than retaining all of it. Applications that enhance blockchain activity and contribute to its development receive these rewards. The governance token, BGT, allows holders to vote on supporting specific validators and projects, influencing the distribution of these rewards.
The initially approved vaults are geared towards DEX liquidity pools, enabling users to swap tokens seamlessly. These pools were chosen based on their liquidity, security, and significance to the network. First among the approved vaults are liquidity pairs on BEX, Kodiak, Beradrome, and other protocols featuring essential assets like BERA, HONEY, and BGT, along with major stablecoins.
Since its mainnet launch on February 6, Berachain has experienced significant growth, with a total value locked of $3.1 billion and nearly $1 billion in circulating stablecoins. February’s trading volume reached $1.9 billion, according to DefiLlama data.
Post-launch, BERA soared to an all-time high of $18.82 before settling in its current range of $6.03 to $6.93. As of March 24, the network boasts a fully diluted valuation of $3.37 and a market cap of $728 million. The new governance initiative is anticipated to draw more users and further propel blockchain growth.