Gate Research Institute: Berachain and its Consensus Mechanism -- Who is still paying for the public chain narrative

Summary

• Berachain is a Layer 1 blockchain that adopts the innovative Proof of Liquidity (PoL) consensus mechanism, enhancing network security and efficiency by rewarding liquidity providers, and addressing the issues of liquidity locking and stake centralization found in traditional PoS.

• The technical architecture is based on Cosmos SDK and BeaconKit, supporting modular EVM compatibility, ensuring seamless development with Ethereum tools and smart contracts.
• The tokenomics design includes three native tokens: $BERA (gas token), $BGT (governance token), and $HONEY (stablecoin), which reduce concentration of rights and promote DeFi activity through functional separation.
• After the mainnet launch, the TVL quickly grew to $3.26 billion, ranking sixth among public chain TVLs, but the early-stage TVL in the ecosystem is concentrated in a few protocols, posing a centralization risk.
• Facing the risks of centralized cartel and market volatility, the decline in staking APR during the crypto bear market may trigger liquidity withdrawals, affecting network security and token prices.

• Issues such as inflation imbalance, weak growth, and conflicting data mean that the sustainability and viability of the PoL model still need to be verified.

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