Thomas Daniels
Berachain has launched the next phase of its Proof-of-Liquidity (PoL) mechanism, broadening governance and emissions beyond its native exchange, BEX. Beginning March 24, decentralized applications (dApps) can apply for network incentives through newly introduced reward vaults—a strategic shift aimed at deepening liquidity and accelerating ecosystem development.
Until now, only liquidity providers on BEX were eligible for reward distributions. The expansion introduces vaults sourced from multiple decentralized finance (DeFi) platforms, establishing a more transparent, user-driven model in which projects compete for rewards based on community allocation.
Berachain’s PoL architecture diverges significantly from conventional proof-of-stake (PoS) systems. Instead of locking tokens for network security, PoL keeps assets actively circulating within DeFi, allowing continued use in trading and lending. Validators in the Berachain system are required to redistribute part of their rewards to the network. These redistributed rewards are directed toward applications that drive on-chain activity and contribute to ecosystem growth. Governance is led by holders of the BGT token, who vote to determine which validators and projects receive rewards.
The initial vaults prioritize decentralized exchange (DEX) liquidity pools that support high-frequency token swaps. Vault selection was based on liquidity, security, and strategic relevance. Notable pools include platforms such as BEX, Kodiak, and Beradrome, featuring key assets including BERA, HONEY, BGT, and major stablecoins.
Since its mainnet debut on February 6, Berachain has grown rapidly. It currently holds $3.1 billion in total value locked (TVL), with nearly $1 billion in circulating stablecoins. February trading volume alone reached $1.9 billion. The BERA token peaked at $18.82 following its launch and currently trades between $6.03 and $6.93. As of March 24, Berachain’s fully diluted valuation is $3.37 billion, with a market capitalization of $728 million. The newly implemented governance system is expected to attract further users and drive continued network expansion.
