The unique proof-of-liquidity mechanism of Berachain will officially go live on March 24, which extends reward distribution beyond Bex Pools to other apps and safes.
In a post of March 21 on X, Berachain Foundation announced That his Pol goes live on March 24, with more vaults introduced in the reward pool.
Originally Berachain’s (Bera) Pol was launched in Bex Pools to distribute BGT to make decentralized board on the chain possible.
Now, from Monday, this will go beyond Bex to more apps and safes, which means that they can also earn rewards. The first series of requests for reward safe of apps has already been approved. For now, rewards are limited to Dex -Pools, but new safes and use cases will be approved from next week. For holders of Berachain’s Governance Token BGT, this means that they can now decide where rewards will go.
Phase 0 → Phase 1
PoL started with a limited rollout within BEX pools, to sufficiently decentralize the BGT supply for on-chain governance.
In preparation for Monday, contracts have been upgraded to support incentive distribution across users, applications, and validators.
— Berachain Foundation 🐻⛓ (@berachain) March 20, 2025
Berachain’s Proof-of-Liquidity Mechanism
Berachain’s blockchain wants to solve the wrong alignment of stimuli in the block-of-stake block chains. In a typical POS blockchain, users have to lock their tokens to secure the blockchain and earn rewards. Although locking crypto is good for security, it is bad for the blockchain’s economy because it means that less crypto is used in apps and transactions. As a result, users prefer to use their assets to get rewards than to use Defi apps that are built on the blockchain.
Berachain was built to resolve this dilemma between security and Defi activities through his novel Pol Consensus -Mechanism. In a typical POS blockchain, Validators earn rewards for validating transactions and passing on part of those rewards to their delegators based on their interests. On Berachain, however, validators have to allocate most of their rewards – which are earned in BGT – to the reward safe of the app instead of keeping it all for themselves. This encourages applications to bribe validators – usually in the form of his native tokens – to stimulate them to send them more BGT. The end result is a competitive environment where validators are encouraged to support the best apps.
In the meantime, Berachain’s token Bera is traded at $ 6.35, a decrease of 57% compared to his highest peak of $ 14.99 on 6 February at the launch. Since the outage of his post-launch peak up to around $ 4 within just a few days, the price has been moved sideways in the range of around $ 4- $ 5 to a bullish breakout up to $ 9 between 18-21 February, supported by an increase in the volume. The momentum took place in the beginning of March, with the price that $ 9.2 peaked before he was confronted with resistance and then withdrew. Then the price gradually fell and stabilized around the support level of $ 6. The volume has also been demolished, which suggests traders waiting for the next catalyst.
