TechFlow Insights
TechFlow Analysis
Berachain's development path differs from traditional blockchain projects. It began as an NFT project called "Bong Bears," which in 2021 received strong support from the Olympus DAO community. The community base was expanded through continuous releases of derivative NFTs (such as The Bond Bears, The Boo Bears, The Baby Bears, etc.). Initially, Berachain existed only as a meme within the community, later being developed into a substantive Layer 1 by developer Dev Bear.
Technical Features
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EVM Compatibility
Berachain is built using BeaconKit, a framework that leverages the Cosmos SDK to create customizable EVM execution environments, making it an EVM-compatible L1 network.
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Innovative Consensus Mechanism: Proof of Liquidity (PoL)
Berachain introduces the Proof of Liquidity (PoL) mechanism, an innovative consensus protocol that uses game-theoretic tokenomics to address the misalignment of participant incentives in PoS networks.
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Validators: Operate network nodes and participate in validation
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Liquidity Providers: Supply liquidity to the ecosystem
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Protocols: Provide services on the network
Under Berachain’s PoL mechanism, liquidity providers who supply liquidity to specific protocol pools can earn rewards in Berachain network tokens, which are issued with each block. Liquidity providers can then delegate these earned tokens to validators to indirectly participate in network validation. Through this process, liquidity providers earn interest from their provided liquidity as well as income via network validators.
By directly integrating liquidity provision into the consensus mechanism, the PoL model effectively promotes sustainable on-chain liquidity and a thriving DeFi ecosystem through token reward emissions, reducing reliance on airdrop marketing to attract users and liquidity—a common issue among existing public chains—while also achieving higher security.
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Three-Token Economic Model
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$BERA: Network fee token; gas fees are burned
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$BGT: Non-transferable inflationary reward token
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$HONEY: Dollar-pegged ecosystem stablecoin
In April 2024, Berachain announced the completion of a $100 million Series B funding round led by Brevan Howard Digital and Framework Ventures. Other investors include Polychain Capital, Hack VC, Samsung Next, Laser Digital, Hashkey Group, Nomad Capital, Hypersphere, Cypher Capital, Rubik Ventures, Arrington Capital, Tribe Capital, and angel investors such as Antony Lewis, Head of Crypto & Blockchain Investments at Temasek, Sandeep Nailwal, co-founder of Polygon, Feng Bo, founder of Dragonfly, and Yat Siu, founder of Animoca Brands.
