Berachain

Berachain is a Layer 1 blockchain built on the Cosmos SDK, positioning itself as an EVM-compatible and community-driven platform. The project was co-founded by individuals known by the pseudonyms Smokey the Bera, Papa Bear, and Dev Bear, who originally conceived the idea from a collection of NFTs called Bong Bears. This origin story highlights a community-centric and culturally-focused approach to development in the decentralized finance (DeFi) space. The blockchain distinguishes itself through its novel "Proof-of-Liquidity" consensus mechanism. This system aims to address the common challenge of split liquidity across decentralized applications by incentivizing users to stake blue-chip assets like BTC and ETH with validators. In return for providing this liquidity, users receive the network's gas token, $BERA.

The protocol operates on a tri-token model, a core element of its economic design. Besides the gas token $BERA, the system includes $BGT, a governance token that is non-transferable and can only be earned by staking $BERA, and $HONEY, the native consensus-collateralized stablecoin. This structure is designed to separate voting power from the primary gas and staking token, aiming to create a more stable and secure governance system. Users interact with the ecosystem by staking assets to earn $BERA, which can then be used for transaction fees or staked to earn $BGT for governance, or burned to mint the $HONEY stablecoin. Berachain's architecture is intended to systematically build liquidity, solve for capital efficiency, and align the incentives of protocols and validators. The platform targets developers and users within the DeFi sector who are seeking a chain with deep, built-in liquidity from its inception. Having raised significant capital, including a $42 million Series A round led by Polychain Capital and a $100 million Series B, the project is valued at over $1 billion and is preparing for its mainnet launch.

Keywords: Layer 1 blockchain, Proof-of-Liquidity, DeFi, Cosmos SDK, EVM-compatible, tri-token model, stablecoin, on-chain governance, crypto-native, capital efficiency