1. Berachain Overview

Berachain is a Layer1 public chain focused on decentralized finance (DeFi) and high-performance trading scenarios. It adopts the novel PoL (Proof-of-Liquidity) consensus mechanism and maintains EVM compatibility at the execution layer, ensuring seamless integration with Ethereum-based applications.

The Berachain ecosystem features two core tokens:

• BERA Coin: Used for network Gas fees, node staking, and network security.
• BGT (Berachain Governance Token): A governance token that binds equity and incentives, distributed through node block generation and ecosystem contributions.

Since its testnet launch in early 2024, Berachain has attracted significant attention from developers and investors in the global DeFi, GameFi, and NFT spaces, thanks to its innovative economic model and high throughput. On February 5, 2025, BERA Coin was officially listed on Gate.io, sparking a new wave of market enthusiasm.

Source:Berachain website

2. Background of the Berachain project

Berachain was co-founded by core members such as Smokey the Bera, Homme Bera, and Dev Bear. The project aims to build a next-generation public chain that deeply integrates liquidity, security, and ecosystem prosperity. Unlike traditional PoS or PoW blockchains, Berachain emphasizes incentivizing liquidity and application development at the chain level, providing foundational support for decentralized trading, cross-chain bridges, and other financial scenarios.

In its design, Berachain leverages CometBFT Consensus (a technical foundation from the Tendermint/Cosmos ecosystem) and integrates seamlessly with the EVM environment through its self-developed BeaconKit modular framework. The project’s most significant innovation lies in its PoL mechanism, which combines ecological liquidity demands with node security, creating a closed loop of staking → incentives → chain security.

Key Features of Berachain:v

1. High-Performance Layer1: Provides an EVM-compatible transaction execution environment and supports mainstream smart contract tools
2. PoL Consensus: Uses liquidity as a key element of system security, improving on-chain capital efficiency.
3. Ecosystem Applications: During the testnet phase, Berachain attracted numerous developer teams working on decentralized trading, collateral borrowing, NFTs, and GameFi.

Source:Berachain Docs Whitepaper

3. Berachain PoL Consensus Mechanism

3.1 Introduction to PoL

PoL (Proof-of-Liquidity) is an innovative economic model proposed by Berachain, tightly integrating node security, ecological liquidity, and user incentives:

1. BERA Coin Staking: Nodes must stake BERA Coin as a security guarantee and take on block proposal responsibilities.
2. BGT Distribution: Block-producing nodes receive BGT (Berachain Governance Token) for governance and secondary incentives.
3. Ecological Liquidity Feedback: Berachain incentivizes users, protocols, and liquidity providers, creating an efficient capital circulation system.

3.2 Roles in the PoL Model

PoL model is consisted of various roles:

• Validators: Stake BERA Coin to participate in block generation and earn BGT rewards based on block proposal quality and liquidity contributions.
• BGT Holders: Delegate BGT to high-quality nodes or provide liquidity to participate in network governance and earn rewards.
• Ecosystem Developers: Build DeFi, NFT, or GameFi contracts to attract external funds and enhance on-chain liquidity.

3.3 Advantages of PoL

• Improved Capital Efficiency: Unlike traditional PoS, PoL allows staked assets to be reused in DeFi protocols, significantly increasing capital utilization.

• Enhanced Ecosystem Cohesion: High-quality applications attract more liquidity and users, benefiting nodes and BGT delegators.

• Reduced Selling Pressure: Nodes and liquidity providers are incentivized to hold more BERA Coin, potentially reducing selling pressure in the secondary market.

4. Berachain Coin Economic Model

BERA Coin plays a dual role in the Berachain network:

1. Gas Coin: All transactions require BERA Coin to pay Gas fees, which are burned upon usage, creating a deflationary effect.
2. Staking and Security: Validators must stake BERA Coin to participate in block production and network governance.

4.1 BERA Coin Basic Information

• Total Supply: 500,000,000 BERA
• Initial Circulation: ~107,480,000 BERA (21.5% of total supply)
• Issuance Mechanism: BERA Coin is not strictly deflationary, with an adjustable inflation rate (currently ~10% annually, distributed via BGT issuance).
• Listing Price: ~$4 on Gate.io (February 5, 2025)

4.2 Token Allocation

(The table below is in English format, with all data units in BERA)

The token allocation follows a 1-year lockup + 24-month linear release model.

4.3 Economic Circulation and Value Capture

• Gas Consumption: Transactions and contracts consume BERA Coin, with a portion burned to reduce circulation.
• PoL Staking: Node staking enhances network security and user trust.
• BGT Incentives: Nodes and liquidity providers earn BGT rewards, fostering community engagement.

5. Berachain Coin Market Trends and Historical Prices

Source:gate.io Spot TradingAs of 2025-03-20

• Real-Time Price: $6.20
• 24-Hour High: $6.268
• 24-Hour Low: $5.956
• 24-Hour Trading Volume (BERA): 1,061,200
• 24-Hour Trading Volume (USDT): 6,491,200
• Market Cap Ranking: #113
• Market Cap: $662,000,000
• Circulating Supply: 107,000,000 BERA
• Max Supply: ∞
• All-Time High: $15.2 (February 6, 2025)
• All-Time Low: $1 (February 6, 2025)
• Total Circulating Market Cap: $3,079,000,000
• Gate.io Listing Date: February 5, 2025

Note: BERA Coin experienced significant volatility after its listing, reaching an all-time high of $15.2 on February 6, 2025, before retracing to $1. As of March 20, 2025, the price has stabilized at $6.20. Investors should be cautious of short-term risks.

6. Conclusion

Berachain is carving a unique path in Layer1 development with its PoL consensus mechanism and EVM compatibility. By deeply integrating ecological liquidity with chain security, it has garnered significant capital attention and community support. From 2023 to 2025, Berachain completed multiple funding rounds, experiencing rapid market value growth and sharp pullbacks.

At present, Berachain faces challenges such as technology implementation, ecosystem development, and competition. However, its innovative approach to liquidity mining and capital efficiency improvement makes it a project worth watching. With the launch of the Boyco platform and the integration of more DeFi/NFT applications, Berachain’s ecosystem is poised for expansion. If the PoL model proves feasible and secure in practice, Berachain could become a benchmark for the next generation of public chains, unlocking new possibilities for decentralized finance globally.