Berachain is a layer-one blockchain that uses a “Proof-of-Liquidity” (PoL) consensus mechanism and claims to be compatible with the Ethereum Virtual Machine (EVM). This is because it was built on top of BeaconKit, a modular EVM-focused consensus client framework, according to the network’s documentation.
Berachain claims to be similar to EVM because its execution layer is identical to Ethereum Mainnet’s runtime environment. This feature benefits decentralized application (dApp) developers who previously built on Ethereum and want to transition to Berachain.
Meanwhile, the PoL consensus mechanism prioritizes users and applications over validator rewards at baseline, according to the network developers.
Technically, network incentives go toward enriching ecosystem liquidity, contributing to efficient trading, price stability, securing the chain, and increasing network and user growth.
What is $BERA Token?
As Berachain’s native token, $BERA is used for paying transaction fees on the network and for staking to validate the layer-one blockchain.
According to its tokenomics, there will be a maximum supply of 500 million $BERA, allocated as follows:
- 84 million, or 16.8%, to the network’s initial core contributors
- 171.5 million, or 34.3%, to the network’s investors from three funding rounds
- 79 million, or 15.8%, for the $BERA airdrop distributed on Feb. 6, 2025
- 65.5 million, or 13.1%, for future community initiatives, including incentive programs and grants to dApps, developers, and users
- 100 million, or 20%, to support ecosystem development, R&D, growth initiatives, and operations of the Berachain Foundation
The Issue
In the first few days following the $BERA launch through an airdrop campaign, traders argued that $BERA’s tokenomics favor early investors and expose retail participants to volatility.
Read More: BitPinas’ coverage on why did $BERA plunge upon launch on our Quick Take: Why Berachain’s BERA Token Is Facing Backlash Over VC Influence.
About the $BERA Airdrop
As of this writing, $BERA airdrop rewards can still be claimed by those who participated in the campaign at https://airdrop.berachain.com/.
However, despite the campaign being concluded, there is speculation that some of the 65.5 million $BERA allocated for future community initiatives and the 100 million $BERA for the Berachain Foundation could be used in future airdrops.
Speculated eligibility criteria include bridging assets to Berachain, staking $BERA, and using dApps within its ecosystem.
The Berachain Ecosystem
Here is a list of Berachain-based dApps speculated to host airdrop campaigns or be part of future $BERA airdrop rewards.
Dolomite
Dolomite (https://dolomite.io/) is a lending protocol that supports a broader range of assets than other lending platforms.
Honey Chat
Honey Chat (https://honeychat.app/) is a SocialFi app that aims to convert user engagement into economic value.
Infrared
Infrared (https://infrared.finance/) is a protocol offering liquid staking solutions for $BGT and $BERA, as well as node infrastructure and PoL vaults.
Ooga Booga
Ooga Booga (https://www.oogabooga.io/) is Berachain’s native liquidity aggregator.
Origami
Origami (https://origami.finance/) is an automated leverage layer for DeFi, fully integrated with third-party lenders to enable folded strategies with full automation.
This article is published on BitPinas: What Is Berachain? Proof-of-Liquidity, $BERA Tokenomics, and Ecosystem Guide
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