Exploring Berachain V2: Transformations in Validator Staking and Slashing Mechanisms
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Exploring Berachain V2: Transformations in Validator Staking and Slashing Mechanisms
A key economic change in V2 is the introduction of a larger validator node deposit.
Navigating Web3 tides with focused insightsAuthor: Infrared Finance
Compilation: TechFlow
In January this year, Berachain launched the Artio testnet, and since then, the ecosystem has been steadily growing. Developers, users, and validator operators have all participated in testing, helping stress-test the network and guide Berachain’s design decisions. The V1 testnet validated core concepts such as Proof of Liquidity, but also revealed areas for improvement—entering the stage for V2. We will summarize the latest achievements from Berachain's core development team.
Highlights
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Validators are now required to stake 69,420 BERA instead of BGT to enhance economic security.
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BGT delegators will no longer be subject to slashing penalties.
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All validators have equal chances of producing blocks.
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The validator cap has been increased to improve decentralization.
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Core tech stack has been switched from Polaris to BeaconKit to improve performance and EVM compatibility.
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An upcoming public Infrared testnet deployment is coming soon.
What’s New in V2
BERA Staking and Slashing Changes
A key economic change in V2 is the introduction of a larger validator bond—the amount of BERA staked by validators. Simply put, the validator bond is the number of tokens a validator must stake to begin producing blocks.
In V2, the validator bond increases from a small amount of BGT to 69,420 BERA. This ensures validators have greater skin in the game, enhancing network security by increasing the cost of potential attacks. This shift means validators take on more responsibility while increasing the utility of BERA without affecting BGT’s role in Proof of Liquidity.
Changes to BERA staking also affect validator slashing—the penalty imposed on misbehaving or underperforming validators. If slashed, a portion of the staked tokens is deducted, which is an undesirable outcome.
In V1, slashing could impact both validators and their BGT delegators. In V2, only the validator’s BERA stake is subject to slashing. This protects BGT delegators and places greater accountability on validators, giving users and protocols greater peace of mind when using their BGT in Proof of Liquidity.
Fairer Block Production
In V1, a validator’s chance of producing new blocks increased with the amount of BGT delegated to them. In V2, block production has been improved so that all validators now have an equal opportunity to produce new blocks, while block rewards scale proportionally with their delegated BGT. This ensures fairer reward distribution and encourages more validators to join the network, while still preserving the importance of BGT delegation.
Validator Cap Increase
The validator cap has been raised from 100 to 128, with potential for further increases in the future. Increasing the validator cap improves decentralization and network security. Decentralization matters!
Architecture Upgrade
Finally, Berachain V2 has migrated from the Polaris architecture to BeaconKit, boosting network performance. BeaconKit enables compatibility with any Ethereum execution client such as Reth, Geth, or Nethermind, making Berachain fully EVM-compatible. This upgrade resolves bottlenecks experienced in V1, ensuring smoother transaction processing. For more details, read Dev Bear’s technical blog post on this topic.
Implications for Infrared
The changes introduced in V2 represent a significant step forward for the network. Berachain V2 will deliver a better experience for users, developers, and validators alike, benefiting the entire ecosystem.
BGT’s transition into a purely economic role strengthens the iBGT-based ecosystem by clarifying BGT’s value proposition. We’ve already seen many protocols adopt iBGT to build flywheels, and expect this trend to continue under the improved BGT design.
Regarding validator BERA staking, we’re planning some exciting initiatives—we’ll share more details soon.
What’s Next?
We’re finalizing preparations for the new, public Infrared testnet deployment and hope to launch it soon for users and partners to explore.
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