Berachain Whitepaper: Aligning Network Value with Application Layer Value through a Dual-Token Model and Reward Distribution Mechanism

BlockBeats News, February 4th, the Berachain Foundation released its network whitepaper this morning. According to the whitepaper, Berachain is a novel EVM-compatible Layer 1 blockchain designed to align the network's value with the value of the applications built on top of it through a Proof of Liquidity (PoL) mechanism. Through its core innovation of Proof of Liquidity (PoL), it transforms the traditional Proof of Stake (PoS) incentive mechanism, tying validator rewards to the needs of applications on the network.

In terms of the economic model, BERA is used for staking and transactions, while BGT is used for governance and rewards. The issuance of BGT is closely linked to BERA staking, and BGT can be burned to redeem BERA. Furthermore, the PoL mechanism controls inflation by adjusting validators' Boost to ensure network security and decentralization.