In the modern blockchain world, Berachain offers a unique approach to ensuring network liquidity and security.
What is Berachain?
Berachain is a modular Layer 1 blockchain using an Ethereum Virtual Machine (EVM)-identical framework. Instead of traditional PoS, it uses Proof-of-Liquidity (PoL), allowing users to maintain liquidity for decentralized applications. Participants providing liquidity receive a governance token (BGT) which determines their share of rewards.
How Berachain Works
Key components of Berachain include:
1. **Proof of Liquidity (PoL):** PoL model integrates liquidity supply into the validation system.
2. **EVM-Identical Execution:** Full Ethereum compatibility ensures seamless operation.
3. **BeaconKit Framework:** Built with BeaconKit, the network can integrate Ethereum tools and updates while maintaining stability.
Berachain Token System and Funding
Berachain operates a three-token system: BERA, BGT, and HONEY, each serving a role in the ecosystem.
* **BERA:** Network gas token used for transaction fees. * **BGT:** Non-transferable governance token. * **HONEY:** Stablecoin pegged to 1 USD.
The project raised $142 million across two funding rounds, with investors like Polychain Capital and Framework Ventures.
Berachain showcases a new model for liquidity management in blockchains. This innovation could set a new standard for Layer-1 networks by simplifying governance and liquidity processes.
