Berachain: The beginning of the end

Berachain: The Beginning of the End

Berachain is entering a whole new phase—partially returning to tradition while also seizing the opportunities brought by the increasingly mature cryptocurrency market. From the optimization of the token economic model to ecosystem support and technological advancements, the foundation for exponential growth has already been laid. This article will elaborate on our future development direction, key focus areas, and specific implementation paths.

Fat Bera Thesis

A year ago, based on the excellent thoughts of the Honey Jar team in January 2023, we wrote the Fat Bera Thesis. The core idea is: the most successful protocols will capture value and distribute it to various stakeholders in the ecosystem by writing the application itself into on-chain rules through “Proof of Liquidity (PoL).”

Our confidence in this vision has never wavered.

As the traditional finance/technology sector gradually merges with the crypto world, the core theory of Berachain becomes increasingly aligned with the intuition and needs of traditional growth investors.

Each public chain has its native resource - inflationary token incentives (emissions). Traditional PoS chains reward staking behavior by issuing inflationary tokens; however, Berachain’s PoL model directs these incentive assets towards the B2B2C growth path within the ecosystem, supporting and empowering decentralized applications, driving user growth, revenue enhancement, TVL growth, and economic vitality expansion.

And all of this will ultimately benefit the holders of $BERA and $BGT.

Just like Microsoft’s investment in the Office suite integration and Apple’s expansion of the App Store, Berachain will continue to invest resources in building the strongest dApp to bring the greatest value to the protocol.

• Blockchain 1.0 is Proof of Work.
• Blockchain 2.0 is Proof of Stake.
• We hope that the representative of Blockchain 3.0 is: Proof of Liquidity.

This year, we expect many projects in the ecosystem to bear fruit—whether from well-known or stealth teams, they will contribute millions in revenue, millions of users, and provide tangible returns for token holders.

Bera is building a real business.

PoL: The Core System with Dual Objectives

Proof of Liquidity (PoL) has always been a core mechanism of Berachain, with goals that include:

• Promote the development and growth of ecological projects;
• Drive value for $BERA.

As the ecosystem matures, the PoL mechanism will also iteratively upgrade, not through frequent modifications (to avoid impacting the stability of developers and the community), but through incremental optimizations to lower the threshold, create a self-growth mechanism, and bring continuous value and buying pressure to $BERA.

We have posted a proposal about PoL V2 in the forum, which is a minimal interference upgrade that allows part of the PoL incentives to be used for buying back BERA and distributing the profits to liquidity stakers – this will become the first step at the chain level to drive the value of the token.

Beyond PoL: Ecological Native DeFi Restart

PoL is the core of Berachain’s growth, but far from all of it. We will also return to the original vision and restart the native DeFi infrastructure.

The products to be launched next include:

• Expand HONEY collateral: Add stablecoins such as USDT to enhance the stablecoin system (expected to launch within 3 weeks)
• Bend: An on-chain native lending protocol that improves capital efficiency and expands liquidity (expected to launch within 4 weeks)
• Berps: An on-chain perpetual contract protocol, currently preparing for technical implementation.

Beras and Barbells: The Bridge Between On-Chain Finance and Traditional Business

Berachain’s long-term vision is to make crypto no longer just a niche industry. Traditional financial players are entering, and we believe that:

• On one end, traditional Web2 enterprises use Berachain as backend services (payment, RWA, consumer products, etc.);
• On the other end is on-chain high-speed speculation and innovation (dApps, financialized games, leverage tools, etc.);
• In the middle is a high-quality, institutional-grade DeFi infrastructure that connects both ends.

End users will cover a wide range, from retail microtransactions to on-chain tokenization of assets at the billion-dollar level.

BeaconKit: A more powerful and efficient core virtual machine

BeaconKit is the core virtual machine of Berachain, fully compatible with EVM, and has been deeply optimized for performance and functionality:

• PoL Protocol Layer Integration (Launched in Q3)
• Optimize transaction fees and gas markets, expecting to burn 1 million BERA annually (launching in Q3)
• Enhance trading throughput and execution performance (Launching in Q4)

BeaconKit will drive L1 chains to have native value capture capabilities, achieving on-chain economic self-consistency.

Resource Focus: Invest in the Winners

We will focus more on resource allocation and support the following projects:

• Projects with a clear growth trajectory;
• Products that have already generated revenue;
• Sustainable delivering founders;
• The team focused on Berachain.

This is not exclusivity, but rather amplifying existing successes. We still support new ideas, but will invest more heavily in paths that have already been proven effective.

Community and Communication: Returning to Bera Style

We will reclaim the early tone of Berachain - a coexistence of professionalism and silliness:

• Foundation account restart shitposting;
• Promote in Bera style on social media;
• Appoint international community leaders to host meetups and hackathons;
• The Build-A-Berathon event will start in August.

Incentive Mechanism: C.R.I.M.E Plan Launches

The new community incentive framework will be named:

C.R.I.M.E: Community Rewards and Incentives for Meaningful Engagement

The incentive standards will be more precise and data-driven, covering:

• On-chain user activity level;
• Total Value Locked (TVL);
• Trading volume and transaction fees;
• Income or buyback volume generated by BERA;
• Cultural Influence and Community Health (as an auxiliary indicator)

All incentives will be distributed over a longer period to ensure a sense of responsibility and continuous development.

Build-A-Bera: The Gold Standard of On-Chain Incubators

Build-A-Bera (BaB) has incubated several of the most influential projects. In the future, it will focus more on:

• Provide exclusive BD and development resources for high-quality projects.
• Raise the selection threshold and only support the most promising S-level teams.
• “Fast Grants” mechanism supports early visionaries and developers in marginalized areas.

The goal is to make Berachain the preferred chain for high-potential teams, allowing excellent projects to take off and grow from here.

Summary: Priority execution, everything follows.

We are not simply publishing a blog to attract attention, but rather:

• Announce our plans and direction
• Show our thoughts and vision
• Establish external expectations and confidence in our execution.

We do not seek to reshape the entire industry, but rather focus on:

• Optimize effective mechanisms
• Support real growth
• Deeply bind the success of the chain with the interests of ecological participants.

We have placed the bet. Now, it’s time to execute.

Berachain.

Statement:

1. This article is reprinted from [TechFlow] The copyright belongs to the original author [TechFlow] If you have any objections to the reprint, please contact Gate Learn TeamThe team will process it as quickly as possible according to the relevant procedures.
2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Other language versions of the article are translated by the Gate Learn team, unless otherwise mentioned.GateUnder such circumstances, it is prohibited to copy, disseminate, or plagiarize translated articles.