Berachain Launches Transition to On-Chain Governance with PoL Model
Date: 2025-03-25 Author: Gabriel Deangelo Categories: BLOCKCHAIN
The EVM-compatible layer-one Berachain blockchain has begun implementing a proof-of-liquidity (PoL) model, moving towards more decentralized on-chain governance. This represents a move away from the limited model associated with BEX’s internal pools in favor of a more flexible and open ecosystem focused on application development.
According to the developers, the main goal of PoL is to enable projects to support sustainable development by providing liquidity. As part of the launch, Berachain has unveiled the first list of reward pools that will be whitelisted. This includes not only the project’s own DEX pools, but also liquidity from other decentralized exchanges within the ecosystem.
Berachain is built on the Cosmos SDK and uses Tendermint consensus, using a modular architecture. There are three main tokens in the ecosystem: BERA is used for gas, BGT is used for voting and governance, and HONEY is a stable digital currency.
Network validators stake BERA tokens and are rewarded with new BGT. The amount of governance tokens directly affects the level of influence of validators on the development of the network: the more BGT, the higher their voice in the governance process.
According to DeFi Llama, the total value of assets locked in the Berachain network has reached $2.94 billion. This is 3.24% of the total amount staked in DeFi protocols, which allows the project to occupy the seventh place among all solutions, ahead of even popular second-layer Ethereum-based solutions such as Arbitrum, Polygon, and OP.
On the back of this news, the BERA token has risen in price by 9.2% over the past 24 hours, reaching $7.4. Despite this, its value remains 54% below its February high of $14.83. According to CoinGecko, the HONEY token has been stable throughout March, holding its capitalization at $527 million.
Recall that in April 2023, Berachain raised $42 million in an investment round led by Polychain Capital. A year later, the project managed to raise another $100 million, which highlights the growing interest in the ecosystem from large investors.
