Berachain (BERA) Staking

About Berachain (BERA/BGT)

Berachain is an innovative Layer-1 blockchain platform designed to revolutionize decentralized finance (DeFi) by integrating a unique Proof-of-Liquidity (PoL) consensus mechanism. This approach aligns liquidity provision with network security, fostering a more efficient and participatory ecosystem.

The platform's tri-token model consists of:

• BERA (Berachain Native Token): Used for gas fees, staking, and securing the network.
• BGT (Berachain Governance Token): A non-transferable token earned through liquidity provision and staking, granting governance rights over protocol decisions.
• HONEY (Stablecoin): A stable asset used for transactions, DeFi lending, and ecosystem payments.

What Makes Berachain Special?

Berachain introduces several unique features that differentiate it from traditional blockchain networks:

1. Proof-of-Liquidity (PoL) Consensus Mechanism

• Unlike Proof-of-Stake (PoS), where users lock up tokens for network security, PoL requires users to provide liquidity to secure the network.
• This ensures capital remains productive while simultaneously contributing to chain security.
• Liquidity providers receive BGT (governance tokens), giving them a say in network upgrades and policies.

2. Ethereum-Compatible with EVM-Identical Architecture

• Berachain is fully compatible with the Ethereum Virtual Machine (EVM), meaning Ethereum developers can seamlessly deploy their decentralized applications (dApps) without modifications.
• This lowers the entry barrier for existing DeFi protocols to migrate or expand onto Berachain.

3. A Thriving DeFi Ecosystem

• Check out our Berachain-Ecosystem-Overview
• Berachain is built for high-performance financial applications, including:
• The low fees and scalable infrastructure make it an attractive environment for DeFi users and developers.

BGT Staking FAQ

How much can I make staking BGT?

The return from staking BGT varies based on the network's overall staking participation, the BGT boost and the BERA stake of a validator.

How do I receive my BGT rewards?

BGT rewards need to be claimed. Visit the Berachain Hub to claim your rewards: https://hub.berachain.com/

When can I start earning rewards with BGT?

You can start earning staking rewards once your BGT tokens are successfully delegated to a validator

Can I sell BGT while it is locked up?

Staked BGT tokens cannot be sold, they need to be unstaked first. Because BGT tokens are soulbound, you need to switch them to Bera (on a 1:1 basis first).

What are the risks around staking BGT?

Staking BGT comes with risks price volatility, and liquidity risk (inability to sell after switch to BERA).

What consensus algorithm does Berachain use?

Berachain is based on the proof-of-liquidty (PoL) consensus mechanism.

What are the tokenomics of Berachain

Read all about BERA/BGT tokenomics here