Berachain's PoL v2 mechanism: Reshaping the value distribution model of public chains

1. The Core Breakthrough of PoL v2: Building an Ecological Value Closed Loop

For a long time, mainstream public chains have faced the "mainnet asset dilemma"—while tokens like ETH and SOL serve important functions in gas fees and consensus mechanisms, they struggle to directly capture the value growth of the ecosystem. Berachain attempts to address this issue through its unique PoL (Proof of Liquidity) mechanism, and the latest v2 version has made a key breakthrough in mechanism design: redistributing 33% of DApp incentives from BGT stakers to BERA stakers. This seemingly minor adjustment actually represents a fundamental shift in the value model of mainnet assets.

Although PoL v1.0 successfully promoted the growth of the total locked value (TVL) of the ecosystem, incentives mainly flowed to BGT and its derivatives. Version 2 establishes a "dual channel distribution" model (67% BGT/33% BERA), allowing primary coin holders to directly obtain protocol-level returns without participating in complex DeFi strategies for the first time. This essentially completes the upgrade of the primary coin from a simple "Gas token" to a "yield asset."

II. Exquisite Mechanism Design

1. Non-inflationary yield: v2 did not increase the issuance of new tokens, but created chain-level cash flow for BERA by reallocating existing incentives. Data shows that currently, approximately $50,000 to $120,000 in incentives is injected directly into the BERA staking pool each week, creating sustained buying pressure.

2. BGT ecological niche protection: Retain 67% of the incentives for BGT stakers, which not only maintains the original incentive effect for the project party but also avoids potential liquidity runs by governance token holders.

3. Triple Positive Feedback Loop:

   • The increase in BERA staking enhances chain security.
   • The increase in the staking rate reduces the circulating tokens.
   • The incentive effect of reducing the circulation volume amplifies the unit BERA.

3. Potential Impact on Market Structure

1. Ordinary users: low barrier to entry Users can now stake BERA to obtain dual rewards:

   • Direct Earnings: 33% incentive distribution (estimated annual yield of 9-15%)
   • Indirect income: native trading platform protocol revenue dividends

2. Developers: New Gameplay for Main Coin Economy Project parties can leverage BERA's yield attributes to design innovative mechanisms, such as:

   • Automatically convert protocol income to BERA for repurchase
   • Develop a veToken model based on BERA
   • Create derivative agreements collateralized by BERA

3. Investors: Reconstructing Valuation Models As BERA gains chain-level yield capabilities, its valuation logic may shift towards a "discounted cash flow" model: Theoretical Market Value = ( Chain Annual Income × Price-Earnings Ratio ) + ( Gas Demand × Inverse of Circulation Speed )

IV. Risks and Challenges Faced

1. Short-term gaming risk: Some BGT stakers may turn to other ecosystems due to reduced incentives.
2. Complexity of the mechanism: Ordinary users still need to understand the interaction between PoL, BGT, and BERA.
3. Regulatory uncertainty: The compliance of the incentive mechanism still needs further verification.

5. Industry Insights: The Competition of Public Chains Enters a New Stage of Value Distribution

The innovation of Berachain indicates that the focus of next-generation public chain competition is shifting from performance and low gas fees to value distribution efficiency. While other public chain projects are also exploring different methods of value distribution, PoL v2 demonstrates a more direct solution - injecting ecological value directly into the main currency through protocol layer design.

If this model can continue to validate its effectiveness, it may inspire imitation from other public chain projects. As the liquidity mining rewards gradually diminish, how to create real demand for public chains has become a key factor determining the success or failure of projects. Berachain's answer is: let the main coin become the biggest beneficiary of the ecosystem's prosperity.