What Is Berachain (BERA) Layer 1 Blockchain Protocol?

Introduction to Berachain

Berachain is quickly emerging as one of the most talked-about blockchain networks in the crypto market. Born from a popular NFT project called Bong Bears, Berachain has evolved into a high-performance Layer 1 blockchain that not only replicates Ethereum's execution environment but also introduces a groundbreaking consensus mechanism—Proof-of-Liquidity (PoL). This guide provides a deep dive into what Berachain is, how it works, its unique tri-token system, and why its innovative design could set a new benchmark for liquidity and security in decentralized ecosystems.

What Is Berachain?

Berachain is an EVM-identical blockchain that mirrors the Ethereum Virtual Machine at its execution layer. This means that any dApp, smart contract, or protocol designed for Ethereum can be deployed on Berachain without significant modifications. However, what truly sets Berachain apart is its novel Proof-of-Liquidity (PoL) consensus mechanism. Rather than locking tokens away as in traditional Proof-of-Stake (PoS) systems, Berachain rewards validators and users for actively providing liquidity, ensuring that assets remain in circulation and accessible for decentralized finance (DeFi) activities.

Berachain's Evolution from Bong Bears NFT Project

Berachain's journey began as a creative experiment within the NFT space. Initially launched as the Bong Bears NFT project, the community's enthusiastic support and creative contributions inspired the development team to expand the vision into a full-fledged blockchain network. Leveraging the Cosmos SDK and the modular BeaconKit framework, Berachain transitioned from a novelty NFT concept to a robust Layer 1 network designed for high throughput and scalability. This evolution demonstrates how community-driven projects can mature into sophisticated infrastructure solutions that address fundamental challenges in blockchain technology.

How Does Berachain Work?

Berachain's architecture is built on three foundational elements that make it both developer-friendly and robust, enabling a new paradigm for blockchain design and operation.

Proof-of-Liquidity (PoL): A New Consensus Model

Berachain's PoL model aligns liquidity incentives with network security in a revolutionary way. Instead of locking up tokens in a traditional staking system, validators and users supply liquidity to decentralized exchanges (DEXs), lending protocols, and other DeFi applications. This approach benefits the network by keeping liquidity available and productive while also rewarding participants with governance tokens and other incentives. Validators earn rewards based on the amount of liquidity they contribute, making PoL an innovative way to merge liquidity provision with blockchain security. This mechanism ensures that the network's security is directly tied to its utility and economic activity.

EVM Identical: Easy Deployment for Developers

Berachain is fully EVM-identical, meaning it operates just like Ethereum at the execution layer. Developers can use existing Ethereum tools, including Geth and Nethermind, to build and deploy smart contracts without any additional modifications or learning curves. This seamless EVM compatibility ensures that Ethereum-based dApps can migrate effortlessly to Berachain, benefiting from its enhanced liquidity mechanisms and network incentives. The elimination of migration barriers significantly reduces time-to-market for developers and enables rapid ecosystem growth.

BeaconKit: A Modular Framework for Scalability

Berachain utilizes BeaconKit, a modular framework that enhances the flexibility and scalability of Ethereum-based blockchains. Built using the Cosmos SDK, BeaconKit allows developers to create custom Layer 1 and Layer 2 solutions while maintaining EVM compatibility. This framework ensures seamless interoperability, rapid finality, and composability between decentralized applications. Additionally, BeaconKit enables Berachain to quickly integrate Ethereum upgrades, ensuring that the network remains up to date with the latest blockchain advancements. This flexible framework allows developers to integrate custom modules, making it easier to scale applications and optimize transaction finality across the ecosystem.

Governance and Community Involvement

Berachain embraces decentralized governance through its Bera Governance Token (BGT). Holders of BGT can participate in governance proposals, voting on network upgrades, liquidity rewards, and future developments. This community-driven approach ensures that those who actively contribute to the network have a voice in its evolution. Additionally, governance decisions focus on refining PoL incentives, expanding ecosystem partnerships, and adjusting protocol parameters to optimize efficiency and network performance.

Berachain Tokenomics: Tri-Token System

Berachain introduces a novel tri-token economy, balancing network operations, governance, and stable transactions. By separating governance, transactional, and stable assets, Berachain ensures that liquidity providers and network participants are properly incentivized without compromising economic stability.

$BERA - Berachain's Utility Token

The native utility token of Berachain, $BERA is essential for executing transactions, paying gas fees, and staking within liquidity pools. It functions similarly to ETH on Ethereum, providing the fundamental utility for the network's operations. Users who stake $BERA in liquidity pools or participate in network activities can earn additional rewards, reinforcing its role in securing and incentivizing the ecosystem. The utility token serves as the economic backbone of the network.

$BGT - Bera Governance Token

$BGT is the governance token that enables decentralized decision-making within the Berachain ecosystem. Unlike typical transferable governance tokens, $BGT is non-transferable and is earned exclusively through active liquidity provision. Holders of $BGT can propose and vote on network upgrades, liquidity incentives, and policy changes, ensuring that those who contribute to the network's stability and liquidity have a meaningful voice in its evolution. This design aligns governance power with network contribution.

$HONEY - Berachain's Native Stablecoin

$HONEY is Berachain's native stablecoin, soft-pegged to the U.S. dollar and designed to facilitate lending, borrowing, and trading across the network. It provides a stable medium of exchange within Berachain's DeFi ecosystem, offering users a low-volatility option for transactions. $HONEY can be minted using collateral assets and plays a key role in supporting liquidity mechanisms, allowing participants to engage in financial activities without exposure to significant price fluctuations.

Berachain (BERA) Token Distribution

The total genesis supply of 500 million $BERA tokens is allocated across five main categories, ensuring a balanced approach to incentivizing early contributors, investors, and the broader community:

BERA Token Release Schedule

To ensure a sustainable growth trajectory and align long-term incentives, all parties receiving $BERA tokens adhere to a standardized vesting schedule:

• Initial Unlock: After a one-year cliff, 1/6th of the allocated tokens are unlocked.

• Linear Vesting: The remaining 5/6ths of tokens vest linearly over the subsequent 24 months.

This structured approach ensures that network participants maintain long-term alignment with the project's success and prevents market destabilization from sudden token releases.

How to Claim the Berachain (BERA) Token Airdrop

The Berachain airdrop is a key part of the network's launch, distributing 15.75% of the total BERA token supply as a reward for early adopters, community contributors, liquidity providers, and ecosystem supporters. Follow this step-by-step guide to verify your eligibility and claim your BERA tokens.

Verify Your Eligibility

Berachain's airdrop rewards participants across several categories, including:

To check your specific allocation, visit the official airdrop checker tool.

Connect Your Wallet

• Choose a Compatible Wallet: Use a crypto wallet such as MetaMask that supports custom network configurations.

• Add the Berachain Network: If you haven't already, add the Berachain Testnet (or Mainnet at launch) by following the network setup instructions provided in the main article.

• Link Social Accounts (if required): For categories like the Social Airdrop, you may be prompted to associate your wallet with your X (Twitter) or Discord account to verify your engagement.

Claim Your $BERA Tokens

Depending on your eligibility category, the claim process varies slightly:

Testnet Users, Request for Proposal, and Social Airdrop

Tokens for these groups will be claimable starting on the official claim date. Here's how you can claim your BERA tokens:

• Log into the Berachain airdrop portal using your connected wallet.

• Confirm your allocation details as displayed on the airdrop checker.

• Follow the on-screen prompts to claim your BERA tokens.

Early Depositors

BERA tokens for early deposit participants will be distributed 30 or 90 days post-launch, depending on the specific market chosen during your deposit.

Ecosystem NFT Holders (Bong Bears & Rebases)

• Use the Bera NFT bridge to transfer your NFTs to Berachain, which will automatically associate the corresponding airdrop allocation with the NFT.

• Note that the allocation is tied to the NFT—if you transfer the NFT, the allocation moves with it, and each NFT can only claim its launch allocation once.

Major Exchange Holders and Strategic Partners

These allocations are processed as part of the subsequent listing process or through direct distribution mechanisms coordinated by the Berachain Foundation. Check official communications for further instructions.

Stay Updated and Follow Official Announcements

• Monitor Official Channels: Regularly check the Berachain website, social media channels (Twitter, Discord), and the airdrop portal for any updates or changes to the claim process.

• Verify Your Allocation: Use the airdrop checker to ensure your allocation details are correct and that your wallet address is properly linked to your eligibility criteria.

How to Add Berachain Network to Your MetaMask Wallet

By immersing yourself in Berachain's testnet and actively participating in its diverse dApps and community initiatives, you position yourself favorably for potential future rewards. MetaMask, one of the most popular web3 wallets with over 100 million users, supports multiple blockchains, with Ethereum set as the default. Here's how you can connect Berachain testnet to a MetaMask wallet:

1. Click the drop-down menu in the top-left of MetaMask.

2. Select Add network.

3. Click Add network manually.

4. Enter the following details:

   • Network Name: Berachain Testnet
   • RPC URL: https://artio.rpc.berachain.com/
   • Chain ID: 80085
   • Currency Symbol: BERA
   • Block Explorer URL: https://artio.beratrail.io/

5. Click Save.

After saving the network configuration, you should be connected to the Berachain Testnet and ready to interact with the ecosystem.

Core dApps in the Berachain Ecosystem

Berachain's robust ecosystem of decentralized applications (dApps) is designed to maximize the benefits of its PoL consensus model and create a comprehensive DeFi environment:

BEX – Berachain's Native Decentralized Exchange

BEX is an AMM-based platform that enables seamless token swaps with low fees and high liquidity. Liquidity providers earn $BGT rewards through their participation, which also contribute to network security through the Proof-of-Liquidity mechanism. This creates a virtuous cycle where trading activity directly strengthens the network.

BEND – Lending and Borrowing Protocol

Similar to established protocols like Aave or Compound, BEND allows users to deposit assets as collateral and borrow the stablecoin $HONEY. Participants earn interest on their deposits and $BGT rewards, incentivizing liquidity provision and active DeFi participation. This protocol is fundamental to Berachain's DeFi ecosystem.

BERPS – Perpetual Futures Trading Platform

BERPS offers leveraged trading on various asset pairs through perpetual futures contracts. Traders can speculate on market movements while liquidity providers earn fees and governance rewards. This platform expands Berachain's utility beyond spot trading and lending.

Pre-Launch Liquidity Platform

The pre-launch liquidity platform tackles the "cold start problem" by allowing users to deposit assets into liquidity vaults before the mainnet launch. This early liquidity support ensures that dApps have sufficient capital from day one, fostering a smooth ecosystem rollout and strong initial network effects.

Conclusion

Berachain presents a promising approach to modern blockchain design, combining an EVM-identical environment with an innovative Proof-of-Liquidity consensus and a tri-token economy. This structure simplifies the migration of Ethereum dApps while incentivizing liquidity and community engagement. The platform's focus on aligning network security with liquidity provision represents a significant innovation in blockchain economics. However, as with any emerging technology, there are inherent risks—including potential security vulnerabilities, market volatility, and development delays. Prospective users and developers are encouraged to conduct thorough research and assess their own risk tolerance before fully engaging with the platform.

FAQ

Is Berachain layer 1?

Yes, Berachain is a Layer 1 blockchain protocol. It operates as an independent blockchain network, not as a Layer 2 solution built on top of another chain.

What does Layer-1 blockchain mean?

Layer-1 blockchain is the foundational network where transactions are directly recorded and validated. It handles all transaction processing and security without relying on external systems, serving as the base infrastructure for the entire blockchain ecosystem.

What is the purpose of Berachain?

Berachain is a Layer 1 blockchain protocol designed to provide high performance, security, and decentralization. It enables efficient DeFi applications, smart contracts, and cryptocurrency transactions with lower fees and faster finality than traditional blockchain networks.

What chain is Berachain?

Berachain is a Layer 1 blockchain protocol designed for the Web3 ecosystem. It operates as an independent blockchain network with its native BERA token, offering high performance and scalability for decentralized applications.

What are the key features and advantages of Berachain?

Berachain offers EVM compatibility, high throughput, and low transaction costs. It features innovative proof-of-liquidity consensus, enabling efficient DeFi operations. The protocol supports fast finality, scalability, and seamless developer experience for Web3 applications.

How does Berachain differ from other Layer 1 blockchains?

Berachain distinguishes itself through its innovative Proof of Stake consensus mechanism combined with a modular architecture. It prioritizes developer experience with EVM compatibility while offering enhanced scalability and lower transaction costs compared to traditional Layer 1 solutions.

What is the BERA token and what is its use case?

BERA is the native governance and utility token of Berachain. It's used for staking, transaction fees, governance voting, and participating in the blockchain's consensus mechanism. BERA holders can earn rewards through delegation and protocol participation.