Berachain, a prominent blockchain platform, is making significant strides in its proof-of-liquidity system with the introduction of new governance and emissions mechanisms beyond its native BEX pools. This development marks a pivotal moment for the platform as it looks to expand its reach and incentivize decentralized applications to participate in the ecosystem.
Previously, Berachain’s rewards distribution was limited to its native exchange, BEX. However, starting on Mar. 24, other decentralized applications will have the opportunity to apply for incentives through new reward vaults. This move is aimed at attracting liquidity from a diverse range of projects, thereby fostering growth and innovation within the Berachain ecosystem.
The inclusion of liquidity pools from various decentralized finance platforms in the initial set of vaults signifies a more transparent and inclusive system. Users now have more control over how incentives are allocated, while projects can compete for rewards based on their contributions to the network.
One of the key features of Berachain’s proof-of-liquidity model is the active participation of assets in DeFi activities. Unlike traditional proof-of-stake blockchains where tokens are locked up for security purposes, Berachain ensures that assets remain in circulation, enabling users to engage in lending and trading activities.
Furthermore, the governance token, BGT, plays a crucial role in the distribution of rewards. Holders of BGT have the power to vote on which validators and projects receive support, thereby influencing the allocation of rewards and the overall growth of the ecosystem.
The first approved vaults will focus on DEX liquidity pools, allowing users to easily swap tokens. Liquidity pairs on platforms such as BEX, Kodiak, and Beradrome, featuring key assets like BERA, HONEY, BGT, and major stablecoins, have been included in the initial set of approved vaults.
Since its mainnet launch on Feb. 6, Berachain has experienced rapid growth, with $3.1 billion in total value locked and nearly $1 billion in circulating stablecoins. The platform’s trading volume in February alone reached $1.9 billion, indicating a strong market demand for Berachain’s services.
Despite facing some price fluctuations, with BERA reaching an all-time high of $18.82 before settling in the $6.03–$6.93 range, Berachain remains a formidable player in the blockchain space. With a fully diluted volume of $3.37 and a market capitalization of $728 million as of Mar. 24, the platform is well-positioned for further growth and expansion.
Overall, Berachain’s new governance initiative is expected to attract more users and drive the continued development of the blockchain ecosystem. By incentivizing decentralized applications and fostering community participation, Berachain is setting the stage for a more vibrant and dynamic decentralized finance landscape.