Berachain is a layer-one blockchain that uses a “Proof-of-Liquidity” (PoL) consensus mechanism

This is because it was built on top of BeaconKit, a modular EVM-focused consensus client framework, according to the network's documentation.

Berachain is a layer-one blockchain using a “Proof-of-Liquidity” (PoL) consensus mechanism and claimed to be compatible with the Ethereum Virtual Machine (EVM).

This is because it was built on top of BeaconKit, a modular EVM-focused consensus client framework, according to the network’s documentation.

Moreover, Berachain claims to be similar to EVM as its execution layer is identical to Ethereum Mainnet’s runtime environment. This benefits decentralized application (dApp) developers who previously built on Ethereum and want to transition to Berachain.

Meanwhile, the PoL consensus mechanism prioritizes users and applications over validator rewards at baseline, according to the network developers.

Technically, network incentives go toward enriching ecosystem liquidity, contributing to efficient trading, price stability, securing the chain, and increasing network and user growth.

What is $BERA Token?

As Berachain’s native token, $BERA is used for paying transaction fees on the network and for staking to validate the layer-one blockchain.

According to its tokenomics, there will be a maximum supply of 500 million $BERA, allocated as follows:

The Issue

In the first few days following the $BERA launch through an airdrop campaign, traders argued that $BERA’s tokenomics favor early investors and expose retail participants to volatility.

After the $BGT airdrop to early $BERA stakers, a portion of the BGT tokens were used to purchase more $BERA, which was then used to buy back and burn more BGT tokens.

At the same time, a portion of the BGT tokens were used to contribute to new projects in the Berachain ecosystem.

However, with the rapid decrease in BGT’s price, some members of the community began to speculate that the rapid burning of BGT tokens and the lack of new project contributions might lead to a decline in the value of BERA.

About the $BERA Airdrop

As of this writing, $BERA airdrop rewards can still be claimed by those who participated in the campaign at https://airdrop.berachain.com/.

However, despite the campaign being concluded, there is speculation that some of the 65.5 million $BERA allocated for future community initiatives and the 100 million $BERA for the Berachain Foundation could be used in future airdrops.

Speculated eligibility criteria include bridging assets to Berachain, staking $BERA, and using dApps within its ecosystem.

The Berachain Ecosystem

Here is a list of Berachain-based dApps speculated to host airdrop campaigns or be part of future $BERA airdrop rewards.

Dolomite

Dolomite (https://dolomite.io/) is a lending protocol that supports a broader range of assets than other lending platforms.

Honey Chat

Honey Chat (https://honeychat.app/) is a SocialFi app that aims to convert user engagement into economic value.

Infrared

Infrared (https://infrared.finance/) is a protocol offering liquid staking solutions for $BGT and $BERA, as well as node infrastructure and PoL vaults.

Ooga Booga

Ooga Booga (https://www.oogabooga.io/) is Berachain’s native liquidity aggregator.

Origami

Origami (https://origami.finance/) is an automated leverage layer for DeFi, fully integrated with third-party lenders to enable folded strategies with full automation.