What Is Berachain (BERA) Layer-1 Blockchain Protocol?

Discover Berachain—an innovative EVM-compatible Layer-1 blockchain that leverages a unique Proof-of-Liquidity consensus mechanism to align network security with liquidity incentives. Learn about its tri-token economy, core dApps, and potential airdrop opportunities for early adopters.

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.

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

Origin: Initially launched as the Bong Bears NFT project, the community’s support and creativity spurred the development of a full-fledged blockchain.
Transition: 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.

Berachain’s architecture is built on three foundational elements that make it both developer-friendly and robust:

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

How Berachain’s Proof-of-Liquidity consensus mechanism works | Source: Berachain docs

Berachain’s PoL model aligns liquidity incentives with network security. Instead of locking up tokens in a 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 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.

2. EVM Identical: Easy Deployment for Developers

Berachain is fully EVM-identical, meaning it operates just like Ethereum. Developers can use existing Ethereum tools, including Geth and Nethermind, to build and deploy smart contracts without any additional modifications. This seamless EVM compatibility ensures that Ethereum-based dApps can migrate effortlessly to Berachain, benefiting from its enhanced liquidity mechanisms and network incentives.

3. BeaconKit: A Modular Framework for Scalability

An overview of BeaconKit’s architecture | Source: Berachain blog

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, such as the upcoming Pectra update, 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.

4. 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 say in its evolution. Additionally, governance decisions focus on refining PoL incentives, expanding ecosystem partnerships, and adjusting protocol parameters to optimize efficiency.

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.

Token	Purpose	Utility
$BERA	Network Utility Token	Used for gas fees, transactions, and staking in liquidity pools
$BGT	Governance Token	Earned through liquidity provision; allows voting on protocol upgrades and network changes
$HONEY	Stablecoin	Used for trading, lending, and borrowing; soft-pegged to the US dollar

$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.

$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 voice in its evolution.

$HONEY - Berachain’s Native Stablecoin

How Berchain’s native stablecoin $HONEY works | Source: Berachain docs

$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

Berachain token allocation | Source: Berachain docs

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:

Category	Allocation	Percentage of Total Supply	Details
Initial Core Contributors	84,000,000 BERA	16.8%	Tokens distributed to advisors and members of Big Bera Labs—the team behind Berachain’s core development.
Investors	171,500,000 BERA	34.3%	Allocated to Seed, Series A, and Series B investors who have supported the project’s early stages.
Community Allocations	244,500,000 BERA	48.9%	Designed to fuel Berachain’s growth through active community and developer engagement. This portion is further divided into three key areas:
• Airdrop	79,000,000 BERA	15.8%	Distributed as airdrops to reward testnet users, NFT holders, social supporters, ecosystem dApp teams, and community builders.
• Future Community Initiatives	65,500,000 BERA	13.1%	Dedicated to incentive programs, grants, and other initiatives proposed by the community to stimulate ongoing participation and application growth.
• Ecosystem & R&D	100,000,000 BERA	20%	Allocated for ecosystem development, R&D, growth initiatives, and operations of the Berachain Foundation. At launch, 9.5% of this bucket is unlocked.

BERA Token Release Schedule

BERA vesting schedule | Source: Berachain docs

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.

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.

1. Verify Your Eligibility

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

Category	Criteria	Allocation
Testnet Users	Utilized the Artio or bArtio testnets	8,250,000 BERA (1.65%)
Request for Brobosal	Successful applicants from the Request for Application (RFA) or Request for Community (RFC) programs	11,730,000 BERA (2.35%)
Boyco Depositors	Deposited capital in the Boyco launch program (directly or via a pre-deposit vault)	10,000,000 BERA (2%)
Social Airdrop	Engaged actively on X (Twitter) or on the Berachain/Bong Bears Discords with constructive commentary	1,250,000 BERA (0.25%)
Ecosystem NFT Holders	Holders of designated NFTs within the Berachain ecosystem	1,250,000 BERA (0.25%)
Binance HODLers	Retroactively awarded to Binance BNB holders	10,000,000 BERA (2%)
Strategic Partners	Core partners powering Berachain’s underlying infrastructure	2,000,000 BERA (0.4%)
Bong Bears & Rebases	Holders of Bong Bears NFTs and subsequent rebase collections (Bond Bears, Boo Bears, etc.)	34,500,000 BERA (6.9%)

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

2. 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.

3. Claim Your $BERA Tokens

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

I. Testnet Users, RFB (Request for Brobosal), and Social Airdrop

Tokens for these groups will be claimable starting on February 10th. 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.

Learn more about how to claim your BERA tokens after the airdrop.

II. Boyco Depositors

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

III. 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.

IV. Binance HODLers 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.

4. 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.

Here’s more information on the Berachain (BERA) airdrop.

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:

Click the drop-down menu in the top-left of MetaMask.
Select Add network.
Click Add network manually.
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/

Click Save.

Source: Berachain docs

After saving the network configuration, you should be connected to the Berachain Testnet.

Berachain’s robust ecosystem of decentralized applications (dApps) is designed to maximize the benefits of its PoL consensus model:

BEX – Berachain’s Native Decentralized Exchange (DEX): An AMM-based platform that enables seamless token swaps with low fees and high liquidity. Liquidity providers earn $BGT rewards, which also contribute to network security.
BEND – Lending and Borrowing Protocol: Similar to Aave or Compound, BEND allows users to deposit assets as collateral and borrow the stablecoin $HONEY. Participants earn interest and $BGT rewards, incentivizing liquidity provision and active DeFi participation.
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.
Boyco – Pre-Launch Liquidity Platform: Boyco 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.

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. 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.

What Is Berachain (BERA) Layer-1 Blockchain Protocol?