Berachain starts a revolutionary governance model for liquidity providers

Berachain startet Proof of Liquidity: Ein neuer Weg zur On-Chain-Governance Berachain hat mit der Einführung des Proof-of-Liquidity (PoL)-Systems den Startschuss für Phase 1 seines On-Chain-Governance-Modells gegeben. Dieser innovative Mechanismus gewährt Liquiditätsanbietern ein Stimmrecht und filtert nicht beitragende Teilnehmer heraus. Damit setzt Berachain einen neuen Meilenstein für ein offenes und partizipatives Blockchain-Ökosystem. Was ist Proof of Liquidity? Mit dem Proof-of-Liquidity-System können Nutzer, die Liquidität bereitstellen, BGT-Token erwerben, die als Abstimmungsinstrument innerhalb des Governance-Modells dienen. Dies bedeutet, dass die Stimme eines Teilnehmers umso einflussreicher wird, je aktiver er Liquidität zur Verfügung stellt. In dieser ersten Phase sind die Nutzer in der Lage, …
Berachain starts Proof of Liquidity: A new way to on-chain-Governance Berachain has given the starting signal for phase 1 of its on-chain government model with the introduction of the proof-of-liquidity (pol) system. This innovative mechanism grants liquidity providers a voting right and filters not contributing participants. Berachain thus sets a new milestone for an open and participatory blockchain ecosystem. What is Proof of Liquidity? With the proof-of-liquidity system, users who provide liquidity can acquire BGT token that serve as a coordination instrument within the governance model. This means that the more influential the voice of a participant becomes available the more active he provides liquidity. In this first phase, the users are able to ... (Symbolbild/KNAT)

<p> <strong> Berachain starts a revolutionary governance model for liquidity providers </strong> </p>

Berachain starts Proof of Liquidity: A new way to on-chain-government

With the introduction of the Proof-of-Liquidity (POL) system,

Berachain gave the starting signal for phase 1 of its on-chain government. This innovative mechanism grants liquidity providers a voting right and filters not contributing participants. Berachain thus sets a new milestone for an open and participatory blockchain ecosystem.

What is proof of liquidity?

With the proof-of-liquidity system, users who provide liquidity can acquire BGT-token that serve as a coordination instrument within the governance model. This means that the more influential the voice of a participant becomes available the more active he provides liquidity. In this first phase, the users are able to make suggestions and actively shape the future development of the ecosystem.

A remarkable aspect of pole is the possibility of filtering out "random" voices. Only those who actually contribute to the liquidity of the network may decide on the direction of the project.

Preparations for the introduction of the pole system

The introduction of pole was the result of years of preparatory work. On February 12, 2025, Berachain expanded its test network Artio and implemented validator sets as well as staking incentives to create a solid foundation for governance mechanisms. The provision of $ 100 million on December 19, 2024 was another big step. These funds serve to promote the development of tools for developers, security systems and the entire decentralized application ecosystem.

Berachain and cross -platform cooperation

The introduction of the POL system also paves the way for cross-platform cooperation. For example, the integration of Berachain with the Dex protocol Orderly was announced, which improves the liquidity through an omnicher order book. Users can trade over 100 plant pairs and use up to 50 times the leverage. This creates an integrated commercial environment in which not only coordinations take place, but also promoted a comprehensive commercial ecosystem.

outlook on the future

phase 1 is only the beginning; Future phases will introduce a more complex governance system, including mechanisms for the transmission of voting rights and to finance projects within the ecosystem. Berachain pursues the goal of establishing a "digital governance" that is controlled by the community itself.

However, they face challenges such as the management of the votes of numerous users, avoiding dominance by large investors (whales) and the guarantee of a high quality of decision.

At the time of publication, BERA's course was around $ 7.01, which corresponds to an increase of 4.55 % in the last 24 hours. With its proof-of-liquidity approach, Berachain is an interesting innovation in the blockchain world that could significantly change both governance and trade.