Berachain has announced an expansion of its Proof of Liquidity (PoL) mechanism, moving from a limited rollout to a broader phase to enhance user engagement and validator participation.
Introduction to Proof of Liquidity (PoL)
The PoL system was initially launched to decentralize the supply of Berachain’s native token, BGT, and establish on-chain governance. With the upgrade, newly whitelisted reward vaults will expand the system's reach beyond decentralized exchange (DEX) pools, allowing participants to earn BGT through various activities, including liquidity provision, trading, gaming, and supporting real-world assets and decentralized physical infrastructure networks.
New Opportunities for PoL Participation
Berachain’s team noted that various dApps on its chain will now be able to participate in the PoL system. The first batch of Requests for Reward Vaults (RFRVs) has been approved, and a complete list of newly whitelisted vaults and their protocols will soon be released. Starting March 24, the new reward vaults will begin distributing incentives, with dApps competing for emissions, fueling user growth and revenue generation.
Team Actions and Future Plans
For BGT holders, the upgrade provides greater control over emission flows, enabling them to support validators and earn protocol incentives. Meanwhile, Berachain's co-founder 'Smokey the Bera' admitted to over-allocating tokens to venture capitalists. In response to community concerns, Berachain is working on buying back BERA tokens to reduce dilution and ensure fairer distribution within the community.
Berachain's PoL upgrade aims to increase user engagement and ecosystem support by providing new opportunities for dApps and users.
