TechFlow news, March 24 — According to The Block, Berachain, an EVM-based Layer 1 blockchain, will launch its Proof-of-Liquidity (PoL) system today, marking the official start of the first phase of its on-chain governance. The PoL system aims to distribute the supply of Berachain's governance token BGT to enable decentralized governance. Initial implementation will begin with specific DeFi liquidity pools, and Berachain developers stated they plan to add new reward vaults beyond the initial DEX pools.
Berachain’s PoL approach incentivizes users to provide liquidity to the network while keeping their assets usable. Unlike traditional Proof-of-Stake (PoS) blockchains that lock up tokens, Berachain encourages users to stake assets in DeFi liquidity pools to earn governance tokens (BGT). Validators then rely on delegated BGT to increase their influence within consensus, meaning network security (via validators) is closely tied to ecosystem liquidity.
