Layer 1 Blockchain Berachain Launches Proof of Liquidity System
Layer 1 blockchain Berachain will launch its innovative “Proof of Liquidity” (PoL) system on March 24. The move marks the start of Phase 1 of its on-chain governance, a significant step towards decentralizing the supply of Berachain’s governance token (BGT).
Amid the network launch, the price of the BERA token has surged by nearly 5% today. At the time of publication, the price of Berachain is trading at $7.04, up 4.6% in the last 24 hours. Ranked 108th in the overall cryptocurrency rankings, BERA has a market cap of $758.4 million.
Source: Binance
“Everything changes on Monday. On March 24th, PoL goes live and governance moves to Phase 1. Incentives start flowing. New vaults start receiving issuance. Here’s what’s changing and what’s next,” he announced.
PoL represents a fundamental shift in how the security and governance of the Berachain network is structured. Instead of the traditional “proof of stake” (PoS) model, where users lock up tokens to validate transactions, Berachain incentivizes the provision of liquidity to DeFi pools. This liquidity in turn generates BGT, a non-transferable token used for governance and to direct rewards.
“Phase 0 → Phase 1 PoL began with a limited implementation within BEX pools, to sufficiently decentralize the BGT supply for on-chain governance. In preparation for Monday, contracts have been updated to support incentive distribution between users, applications, and validators.”
Specifically, Berachain’s PoL system distributes the native governance token (BGT) to liquidity providers, allowing users who contribute liquidity to the platform to actively participate in network decision-making.
“Monday, March 24th On Monday, Batch 1 protocols’ whitelisted rewards vaults will be able to begin directing incentives to validators and users. This kicks off true Proof of Liquidity with applications competing for issuance to drive user growth,” highlighted.
It is worth remembering that Berachain, recognized as one of the most innovative blockchains of 2025, had its launch official on February 6th, with the listing of $BERA on the main cryptocurrency exchanges, such as Binance, ByBit, Gate.io, BitGet, MEC, BingX, among others.
About Berachain
Berachain is a layer-1 blockchain built on the Cosmos SDK framework, which exhibits remarkable compatibility with the Ethereum Virtual Machine. Operating on the innovative Proof of Liquidity consensus mechanism, Berachain efficiently addresses two significant challenges: liquidity and network decentralization.