Berachain launches “Proof of Liquidity” system, kicks off governance phase

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Cointime2025/03/24 08:55

By:Cointime

Berachain, a Layer 1 blockchain based on EVM, will launch its Proof-of-Liquidity (PoL) system today, marking the official start of the first phase of on-chain governance. The PoL system aims to decentralize the supply of Berachain governance token BGT to achieve on-chain governance. The initial implementation will take place in specific DeFi liquidity pools, and Berachain developers stated that they plan to add new reward pools outside of the initial DEX pool.

Berachain's PoL approach encourages users to provide liquidity to the network while allowing these assets to remain available. Unlike traditional Proof of Stake (PoS) blockchains that lock tokens, Berachain encourages users to stake assets in DeFi liquidity pools to earn governance token BGT. Validators then rely on the BGT delegated to them to increase their influence in consensus, meaning network security (through validators) is closely linked to ecosystem liquidity.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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