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Committed to building a decentralized trading blockchain, revealing the features and ambitions of Berachain.

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Berachain is building a decentralized trading blockchain with transparent rules and decentralization.

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Original author: 0xTaki.eth

Editor's note: On January 11th, the same day that BTC ETF was approved, Berachain's public testnet "Artio" was officially launched. In a previous article "How to participate in the new public chain Berachain testnet (with tutorial)", we introduced how to participate in this public beta test. As for the core features and problems solved by Berachain, cryptocurrency blogger 0xTaki.eth has made his own analysis on X, and BlockBeats has compiled the full text below:

1. Bera's three-generation token model is introduced at the beginning for a better understanding of Bera's mechanism. The three-generation tokens consist of GasCoin BERA, governance token BGT, and stablecoin HONEY. It is easy to understand that regular users use BERA for GasFee and use stablecoin HONEY to avoid risks. The difficulty lies in BGT, which is used for staking to validator nodes for liquidity proof (PoL). Users who do not want to hold BGT can burn and exchange it for BERA to use as GasFee.

2. Bera used the term Proof of Liquidity, how should we understand it? Just ask one question: Who are the miners? In PoW, the people who provide computing power are the miners, and they get GasFee by packaging nodes. In PoS, there are two types of miners, one is running a computing power node, and the other is a cloud miner who pledges ETH to the node. To become a node, you must pledge 32 ETH, so people with computing power will bribe people with ETH to pool the margin and share the gas revenue. What about PoL?

3. In PoL, nodes not only provide computing power, but also have the right to set the reward distribution for BGT and invest in supported AMM pools. In order to attract support for their own distribution proposals, nodes can use Bera or other tokens to bribe votes. This has resulted in three types of miners:

1) Provide computing power, distribute rewards, and act as a miner node.

2) Liquidity providers receive BGT rewards from the allocation.

3) Pledge BGT to the node and receive bribes from the node.

4. What problem has been solved?

1) The high staking rate of ETH means that there is less circulating ETH, resulting in insufficient pricing and artificially increasing scarcity. If it were not for the strong ecosystem of ETH itself, but for small chains, if the coin price falls, miners would remove their stakes to avoid risks, causing high asset volatility. On Bera, BERA is not used for staking, so it circulates fully and has a clear and calculable inflation/deflation rate.

2) The capital efficiency of ETH staking is low, and the locked ETH has no other use, becoming a kind of interest-bearing brick. Therefore, many projects are considering restaking for this reason, which will not be elaborated here. On Bera, there is a new type of "market maker miner", providing liquidity for recognized token pairs as miners participating in the mechanism of the chain.

3) Traditional DEX lacks token consumption scenarios and is in a high inflation state all year round. The subsidies provided to liquidity providers are constantly shrinking. Bera uses the GasFee of the entire chain to consume the incentives distributed, which is real money and silver for liquidity providers.

4) More Decentralized - This point is harder to understand. Let me explain how Bera's advanced gameplay improves decentralization. First of all, most of the Ethereum cloud miners stake ETH. After all, it is not convenient for everyone to provide a cloud server, and saving money is not difficult. Therefore, some mining pools have absorbed the staking of retail investors or have sufficient capital to open many nodes. However, there are not many mining pools that retail investors can trust, which exacerbates the trend of centralization.

5. Assuming you are a project party on the chain, you have your own token A and a HONEY-A pool. In order to deepen the liquidity pool, general project parties will airdrop incentives to the pool, such as SUSHI rewarding the SUSHI-USDC liquidity pool. In Bera, you have an advanced method where you can build your own node, invest the weight into your own liquidity pool, and use the official BGT to reward your token pool.

6. The project party can also use its own tokens to bribe nodes and attract people with BGT to pledge support for their nodes. Users of the project will also actively pledge BGT to support project nodes in order to obtain more rewards from the pool. For the project party, having its own node will earn voting rights and more incentives on Bera for the community. For users, supporting projects with nodes can provide real returns to the community.

7. This is equivalent to motivating each project party to deploy their own nodes, attract their own users, and form a Bera governance community with shared interests. The more projects there are, the more nodes there will be. The goal of decentralization is achieved.

8. What is Bera's ambition?

Reviewing the encryption industry: the approval of BTC ETF has brought asset inflows to Web3, but the downside is that compliant assets face more regulation. We have seen too many CeFi manipulations, power outages, and misappropriation of assets. They have been compromising with politics: evicting users, imposing high fines, surrendering the list of large account assets, and confiscating assets in the name of anti-money laundering, which contradicts the original intention of Satoshi Nakamoto's creation of anarchic currency.

9. And Bera's official self-operated DEX+, which uses GasFee as real money to support LP, is undoubtedly building a decentralized blockchain for trading. The rules are transparent, decentralized, and as secure as Ethereum, and will never go bankrupt or misappropriate funds. With a variety of trading products and leverage tools, Berachain, a trading platform that is directly integrated into a chain, is here. Do you still want to continue putting your money in centralized exchanges?

10. Anonymous anti-censorship, decentralization, security, encrypted Beras will never compromise!