Berachain – Earlybirds Invest

PoL framework and incentives

The PoL mechanism operates through a dual-token model. Validators stake BERA for chain security and rewards, while investors use BGT for governance and block reward allocation.

Under the new framework, validators receive BGT emissions based on their delegated BGT boost percentage. These emissions are then directed to the reward vaults of the validator’s choosing, enabling protocols to use those emissions as user incentives.

This distribution layer adds flexibility to Berachain’s validator economics. The blockchain incentivizes validators to direct emissions to maximize the protocol-provided incentives they receive efficiently.

As new vaults come online, users supplying liquidity to various protocols — whether through staking, swapping, or yield farming — can earn BGT by staking receipt tokens.

Berachain’s validator set is limited to the top 69 validators by staked BERA, with a minimum entry requirement of 250,000 BERA and a cap of 10 million BERA. The probability of proposing a block within the active set is proportional to the validator’s stake.

When selected, validators receive a fixed base reward and a variable BGT reward, depending on their relative boost level.

Competing to attract liquidity

The launch of Proof of Liquidity marks a structural shift in Berachain’s economic design by aligning block reward issuance with application usage and user engagement through a live, real-time incentive layer.

As a result of the new rewards framework, protocols within the Berachain ecosystem will now compete to attract liquidity by offering compelling vault incentives.

These protocols effectively bid for validator-directed emissions, refreshed every five hours based on updated validator allocations.

Berachain has also created the BeraHub, which gives participants transparency in the rewards flow and distribution by tracking emissions and vaults in real time.

Decentralized application teams are integrating all metadata associated with the vaults, including token logos and pool names, as part of the broader deployment process.

Berachain – EVM-identical Layer 1 blockchain – has reached a new milestone this week.

Within 20 days of its Mainnet launch, Berachain has surpassed major blockchains such as SUI, Avalanche, and Arbitrum, in Total Value Locked (TVL), after hitting $3.27 billion before retreating mildly. Berachain secured the sixth position in DeFi TVL following the new feat before slipping the seventh spot right behind Base.

Berachain’s Rapid Growth And Expanding Ecosystem

The latest figure outpaced SUI’s $1.4 billion and AVAX’s $1.23 billion TVL. Despite most native protocols yet to launch – suggesting potential for further growth – Berachain currently holds a $700 million circulating market cap. It ranks among the top 100 on CoinMarketCap and is trading at $6.7 at the time of writing.

Meanwhile, DeFiLlama’s data revealed that Berachain topped other chains in terms of net bridge inflows over the past seven days.

According to market experts, this rapid ascent by Berachain presents an asymmetric bet with significant upside potential.

Berachain’s expansion has been fueled by major protocols. For instance, liquid staking platform Infrared Finance stands at the forefront, holding $1.52 billion in TVL. Decentralized exchange Kodiak followed closely with $1.1 billion, while yield farming protocol Concrete contributed nearly $1.11 billion in locked assets.

BERA Airdrop Controversy

The Bera Foundation distributed released BERA airdrops to community members after the successful launch of the Proof-of-Liquidity Layer 1 network on February 6. This was heralded as one of the biggest airdrops ever in the industry, covering 15.75% of its 500 million token supply. But the airdrop sparked community backlash over perceived unfair allocations.

Despite long-term engagement, the testnet users received just 1.65%, while Bong Bears NFT holders got 6.9%, which prompted criticism on social platforms. The Berachain Foundation defended the distribution and cited targeting challenges.

Berachain emerged as one of the most talked-about crypto projects at Token 2049. In April, it raised $100 million in a Series B round co-led by Brevan Howard Digital’s Abu Dhabi branch and Framework Ventures. The fund also witnessed backing from Polychain Capital, Hack VC, and Tribe Capital. In a statement to Bloomberg, Berachain co-founder “Smokey The Bera” had said,

“We see this raise as a major validation of our approach to building a blockchain that’s built on feedback from real users and developers, and driving value to those groups who are actually contributing to the network’s growth.”

The company said the new funding would strengthen its presence in Hong Kong, Singapore, Southeast Asia, Latin America, and Africa.

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