Berachain will proceed to the distribution of its airdrop of BERA tokens in parallel with the launch of its mainnet.
The challenge is many challenges. One of the big issues today is the lack of liquidity and the excessive centralization of validators. This is contrary to the principle of challenge. It is in this context that Berachain enters, a layer 1 which offers a rather interesting approach with its «Proof of Liquidity» (PoL) mechanism. Unlike stacking, the objective of this new governance model is to encourage users to provide their liquidity.
For over a year, Berachain has implemented its testnet. Now the mainnet is in place. Berachain is a blockchain compatible with the Ethereum Virtual Machine (EVM) built with the Cosmos SDK and integrating CometBFT as well as Polaris EVM to maximize both its performance and flexibility.
This new blockchain is based on 3 cryptocurrencies: the BERA (native crypto), the HONEY (stablecoin) and the BGT, its governance token. Airdrop is currently underway. For those who have BNB on Binance, they should be eligible for a distribution soon.
Supported by major investors such as Polychain Capital and Hack VC, Berachain raised $142 million. The platform natively integrates several core services, such as a decentralized exchange (DEX), an oracle and an innovative reward box system (PoL). The project is based on three principles.
Proof of liquidity, what is it?
The big difference between PoS and PoL is that in a Proof of Stake (PoS) system, users are rewarded for simply blocking their tokens (putting into play), Berachain’s Proof of Liquidity (PoL) emphasizes “active participation” within the network, in addition to reducing centralization around a few large validators. Proof of Liquidity allows users to actively provide liquidity to the network (as liquidity is provided to the entire Berachain ecosystem and not just one validator) rather than simply immobilizing their tokens for the sole purpose of securing the network. This is a major innovation in terms of decentralization. Berachain has created a system where validators do not directly get the rewards in BGT (Berachain Governance Token). Instead, they earn the right to direct these shows to specific reward vaults, creating an environment where applications compete for these shows, because they seek to attract validators to their coffers for a greater share of liquidity and rewards (and therefore security). Of course, validators still receive rewards based on the amount of BGT delegated to them. Users can also lock their assets in these vaults to receive a share of the BGT issued as returns.
Although the project is very innovative, the proportion of tokens distributed via airdrops raises questions. In fact, just over 8% of the tokens compared to the total supply will be distributed. A bad start for blockchain, which is already receiving the first criticism from its community.
