1/ Berachain's Proof of Liquidity is evolving.
As crypto adapts to fit a more mature crowd of asset allocators, the Beras are making some changes.
Here's everything you need to know about the new PoL 🧵
As crypto adapts to fit a more mature crowd of asset allocators, the Beras are making some changes.
Here's everything you need to know about the new PoL 🧵
2/ Most chains spend emissions like a faucet. Value flows out, little flows back, and the chain underwrites the economy while earning none of the upside.
Berachain flipped that with Proof of Liquidity. Now we're scaling it.
Berachain flipped that with Proof of Liquidity. Now we're scaling it.
3/ PoL Next Roadmap: turn every dollar emitted into compounding returns for $BERA holders.
Phase 1: Cut the waste ✅
Phase 2: Simplify the token model ✅
Phase 3: Launch ERA (Emission Return Agreement), coming to mainnet next ⏭️
Phase 1: Cut the waste ✅
Phase 2: Simplify the token model ✅
Phase 3: Launch ERA (Emission Return Agreement), coming to mainnet next ⏭️
4/ Phase 1 was about making emissions leaner.
Inflation cut from 8% to ~5%, dedicated emission streams launched for chain-owned initiatives, and stagnant reward vaults consolidated.
Fewer idle allocations. More impact per token emitted.
Inflation cut from 8% to ~5%, dedicated emission streams launched for chain-owned initiatives, and stagnant reward vaults consolidated.
Fewer idle allocations. More impact per token emitted.
5/ Phase 2 simplifies the token model entirely.
BGT is deprecated, the boost curve is removed, and all incentive value accrues into SWBERA. One token, one yield path, one value sink for the entire ecosystem.
BGT is deprecated, the boost curve is removed, and all incentive value accrues into SWBERA. One token, one yield path, one value sink for the entire ecosystem.
6/ New token flow.
BGT and Incentive Tokens collapse into a single SWBERA rail. Emissions flow to teams, revenue flows back to SWBERA holders through ERA cohorts and the existing Incentive Marketplace, with ERA replacing Incentive Marketplace entirely in the near future.
BGT and Incentive Tokens collapse into a single SWBERA rail. Emissions flow to teams, revenue flows back to SWBERA holders through ERA cohorts and the existing Incentive Marketplace, with ERA replacing Incentive Marketplace entirely in the near future.
7/ Phase 3: ERA is coming.
Selected teams receive dedicated emission streams sized to their stage and growth plan, returning a minimum fixed yield on every BERA emitted over 3-12 months, with a portion of future revenue shared back to Berachain in perpetuity.
Selected teams receive dedicated emission streams sized to their stage and growth plan, returning a minimum fixed yield on every BERA emitted over 3-12 months, with a portion of future revenue shared back to Berachain in perpetuity.
8/ Every BERA emitted comes back stronger.
High-growth teams use ERA for non-dilutive capital → scale revenue → Berachain/SWBERA earns fixed return on emissions plus perpetual revenue share → stronger $BERA → more growth capital → more teams funded → repeat.
High-growth teams use ERA for non-dilutive capital → scale revenue → Berachain/SWBERA earns fixed return on emissions plus perpetual revenue share → stronger $BERA → more growth capital → more teams funded → repeat.
9/ Timeline.
PoL Next goes live on Bepolia testnet May 26, with the Fusaka EL hardfork following May 27 at 1600 UTC, with mainnet planned for late June. Residual BGT remains redeemable for BERA from the Hub, with future emissions claimable as WBERA or SWBERA.
PoL Next goes live on Bepolia testnet May 26, with the Fusaka EL hardfork following May 27 at 1600 UTC, with mainnet planned for late June. Residual BGT remains redeemable for BERA from the Hub, with future emissions claimable as WBERA or SWBERA.
10/ Teams are aware of the changes.
We're working closely with ecosystem teams and LSTs on migration options in preparation of BGT being phased out to ensure users have a clear path forward.
We're working closely with ecosystem teams and LSTs on migration options in preparation of BGT being phased out to ensure users have a clear path forward.
11/ See the full details on the Forum.
If you'd like to read more about the full roll out, see the latest forum post here:
dub.sh/8O7MrJZ
If you'd like to read more about the full roll out, see the latest forum post here:
dub.sh/8O7MrJZ
13/ Full details later this month.
If your team is building something poised for rapid expansion, and are in search of non-dilutive growth capital, reach out. We want to hear from you for the next ERA cohort.
$BERA is the asset. SWBERA is the yield. Growth is the product.
If your team is building something poised for rapid expansion, and are in search of non-dilutive growth capital, reach out. We want to hear from you for the next ERA cohort.
$BERA is the asset. SWBERA is the yield. Growth is the product.
14/ Thanks for reading.
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