PoL System Goes Live to Decentralize Governance
Berachain has launched its long-awaited “proof-of-liquidity” (PoL) system, the first phase of its on-chain governance. The new model aims to decentralize the supply of its governance token BGT via DeFi liquidity participation.
How Proof of Liquidity Works
Unlike traditional proof-of-stake models, PoL ties the blockchain's security directly to ecosystem liquidity. Users earn BGT—Berachain’s soulbound governance token—by providing liquidity to DEX pools. Delegated BGT then enhances validators’ consensus power.
Technical Structure of Berachain
Built using Cosmos SDK and Tendermint consensus, Berachain operates with three native tokens: BERA for gas and staking, HONEY as a stable asset, and BGT for governance. The PoL model also incentivizes long-term ecosystem involvement.
$3 Billion TVL and Funding Rounds
The launch follows a successful liquidity bootstrap via its pre-mainnet platform Boyco, which brought in $3 billion in TVL. Berachain has raised $142 million to date across multiple rounds led by Polychain Capital and Framework Ventures.
