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 optimizing the token economic model to ecosystem support and technological advancements, the foundation for exponential growth has already been laid. This article will outline our future development direction, focus areas, and specific implementation paths.

Fat Bera Thesis

A year ago, based on the excellent thinking of the Honey Jar team in January 2023, we wrote the Fat Bear Thesis. The core idea is that 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 industry gradually merges with the crypto world, Berachain's core theory is becoming 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 inflation 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 increase, TVL growth, and economic vitality expansion.

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

Just like Microsoft's investment in the Office suite integration and Apple's expansion of the App Store, Berachain will continuously invest resources to build the strongest dApp, thereby bringing maximum 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 hidden teams, they will contribute millions in revenue, millions of users, and bring actual returns to token holders.

Bera is building a real business.

PoL: 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 released a proposal regarding PoL V2 in the forum. This version is a minimally disruptive upgrade that allows a portion of the PoL incentives to be used for the buyback of BERA and the distribution of earnings to liquidity stakers – this will be the first chain-level step to drive token value.

Beyond PoL: Ecological Native DeFi Restart

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

The upcoming products include:

Expand HONEY collateral: add stablecoins such as USDT to enhance the stablecoin system (expected to launch within 3 weeks)

Bend: On-chain native lending protocol that improves capital efficiency and expands liquidity (expected to launch in 4 weeks)

Berps: On-chain perpetual contract protocol, currently making technical preparations.

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

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

On one end, traditional Web2 companies use Berachain as a backend service (payments, RWA, consumer products, etc.);

On the other hand, there is high-speed speculation and innovation on the chain (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 worth billions of dollars.

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 (Launch in Q3)

Optimize transaction fees and gas market, expected to burn 1 million BERA annually (launching in Q3)

Enhance trading throughput and execution performance (Launched in Q4)

BeaconKit will enable the L1 chain itself to possess native value capture capabilities, achieving self-consistency in the on-chain economy.

Resource Focus: Invest in the Winners

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

Projects with clear growth trajectories;

Products that have already generated revenue;

Sustainable delivery founders;

The team focused on Berachain.

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

Community and Communication: Returning to Bera Style

We will restore the early tone of Berachain - professionalism + absurdity coexist:

Foundation account restarted shitposting;

Promote in Bera style on social media;

Appoint international community leaders to hold meetups and hackathons;

The Build-A-Berathon event will start in August.

Incentive Mechanism: C.R.I.M.E Program Launch

The new community incentive framework will be named:

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

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 amount generated using 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 ongoing development.

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

Build-A-Bera (BaB) has already incubated several of the most influential projects. In the future, it will focus even 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: Prioritize 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 are not looking to reshape the entire industry, but rather to 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.