- Berachain launches Proof-of-Liquidity, starting Phase 1 of its on-chain governance model.
- PoL gives voting power to liquidity providers, filtering out non-contributing participants.
Berachain has now begun a new chapter in its journey, launching its Proof-of-Liquidity (PoL) system today, marking the beginning of Phase 1 of its on-chain governance.
This launch is the core of a fresh way to create an open and participatory blockchain ecosystem, not only an additional feature. By staking and earning BGT—a unique token used for voting—the user community can now join in the decision-making process via PoL.
In the real world, this is like neighbors who can vote on the building of a new road since they once paid for repairs. Here the crowdfunding is conducted via crypto liquidity, and their votes might affect the course of developing technologies.
🚨 UPDATE: @BERACHAIN (BERA) TO LAUNCH ITS PROOF-OF-LIQUIDITY (POL) SYSTEM TODAY, MARKING THE START OF PHASE 1 FOR ITS ONCHAIN GOVERNANCE
— BSCN Headlines (@BSCNheadlines) March 24, 2025
Liquidity as Power: Where Votes Flow with Capital
Proof-of-Liquidity is not a new concept, but Berachain has polished it into something more lively. Essentially, users who provide liquidity to the protocol will receive BGT, which serves as a voting tool in on-chain governance. So, the more actively someone contributes liquidity, the more influential their vote will be.
In Phase 1, users can submit proposals, choose the direction of development, and help create the rules of the ecosystem.
Fascinating still, this technique also filters out “random” voices. Only those who contribute liquidity can talk about where the project is going.
Behind the Scenes: Prep Work That Led to PoL
Actually, for a long time all of this has been heating up. On February 12, 2025, Berachain extended its “Artio” testnet. With validator sets, staking incentives, and more all-encompassing governance mechanisms included, the update was no joke. Therefore, the PoL launch today did not arise out of nowhere but rather was the outcome of careful preparation.
On the other hand, the $100 million in funds disbursed on December 19, 2024, is also important fuel. The funds were allocated to strengthen the development of developer tools, security systems, and the decentralized application ecosystem.
The main focus is still the same, innovation in consensus and governance through the PoL approach that they believe will be differentiating compared to other blockchain networks.
Beyond Voting: Berachain’s Growing Trading Power
PoL also opens the path wide for cross-platform cooperation. One instance that CNF reports is Berachain’s integration with Orderly. By means of this integration, the DEX protocol can provide enhanced liquidity straight through the PoL model and an omnichain order book. More interesting still, users may trade constantly on more than 100 asset pairs with up to 50x leverage.
Just imagine being able to go long or short on dozens of assets with maximum flexibility, but still in an integrated environment through on-chain governance. It’s not just about voting but also about creating a fully connected and efficient trading ecosystem.
Phase 1 Is Just the Beginning, Not the Finish Line
Phase 1 marks a start for a more complicated governing system in the succeeding phases, not the end. Later, there will be a voting delegation system, upgrade contracts, and even a voting mechanism to fund projects in the ecosystem.
In a sense, Berachain wants to create a “digital government” that doesn’t just exist on paper, but is truly driven by its own community.
However, the challenges are certainly not few. Managing the voices of thousands of users, avoiding whale dominance, and maintaining the quality of decisions are things that must be continuously monitored.
Meanwhile, as of press time, BERA is swapped hands at about $7.01, up 4.55% over the last 24 hours and 6.49% over the last 7 days.
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