Berachain is rolling out a unique Proof-of-Liquidity mechanism, expanding the reward system to new apps and vaults from March 24.
Launch of the Proof-of-Liquidity Mechanism
On March 21, Berachain Foundation announced in a post that their PoL would go live on March 24, extending rewards beyond the BEX pool to encompass more applications. Initial requests for the Reward Vault have already been approved.
Berachain's Operating Model
Berachain, designed to address incentive misalignment in PoS blockchains, offers an innovative PoL mechanism. Unlike typical PoS blockchains where validators retain most of their rewards, Berachain requires them to redirect rewards to application vaults, fostering a competitive environment.
Current BERA Token Dynamics
The BERA token is experiencing market fluctuations. Since hitting an all-time high of $14.99 in February, the price has decreased to $4 and then fluctuated between $4-9. Currently, the price has stabilized around $6 as it awaits new developments.
Berachain's Proof-of-Liquidity mechanism promises to reshape reward distribution, fostering stronger interaction between validators and applications. Meanwhile, the market is watching for new catalysts affecting the BERA token.
