What is Berachain (BERA)?

Deep Dive

1. Technology & Architecture

Berachain’s execution layer is EVM-identical, meaning it supports unmodified Ethereum tools (like Geth or Nethermind) and inherits upgrades like Dencun. Its modular BeaconKit framework combines CometBFT consensus for fast finality and composability.

The chain introduces Proof-of-Liquidity (PoL), a novel consensus mechanism that redirects network incentives toward liquidity providers rather than validators. This aligns validators, protocols, and users around deepening on-chain liquidity, which supports efficient trading and ecosystem growth (Berachain Docs).

2. Tokenomics & Governance

Berachain uses three tokens:
- BERA: Gas token and staking asset (recently upgraded with PoL V2 to earn native yield via protocol buybacks).
- BGT: Non-transferable governance token earned by providing liquidity; used to delegate to validators or vote on proposals.
- HONEY: Overcollateralized stablecoin for liquidity incentives and transactions.

Under PoL V2, 33% of protocol emissions now flow to BERA stakers, creating a direct yield mechanism while preserving BGT’s role in governance (Dolomite Integration).

3. Ecosystem Fundamentals

Key native dApps include BEX (decentralized exchange), Bend (lending), and Berps (perpetuals), which act as reference implementations for PoL incentives. Projects like Dolomite enable advanced strategies—staking BERA to earn yield while using it as collateral for leveraged positions.

The chain has attracted $190M+ TVL in protocols like KodiakFi, which offers liquidity mining with APRs up to 60% for BERA pairs (Community Post).

Conclusion

Berachain combines Ethereum’s developer toolkit with a liquidity-first economic model, using its tri-token system to balance gas efficiency, governance, and stable liquidity. How will its focus on aligning incentives through PoL impact long-term adoption against competing EVM chains?