【Understanding the highly anticipated liquidity design king Berachain - with opportunities for ordinary users】

The hibernating giant bear @berachain entered a hibernation (keeping a low profile) mode after the collapse of Luna in 2022, and with the market rebounding, Bera is actively collaborating with dozens of projects to fill the multi-billion market value gap left by Luna and become the leader of the Cosmos ecosystem 🚀🚀🚀

In this article, I will cover:

1. What is Berachain
2. Ways for users to profit
3. Understanding the three-token model
4. Deep discussion direction of Berachain

What is Berachain?

Berachain is a Layer1 built on the Cosmos SDK and compatible with EVM. It adopts a special Proof of Liquidity (PoL) consensus mechanism, aiming to integrate liquidity/network security/incentives to support a rich ecosystem of applications.

Berachain was proposed in 2022 and completed a cold start (with very strong Meme/Cult attributes, those who played OHM3 back then know) during the bear market period in the OlympusDAO community through an NFT series. In 2023, it was led by the well-known VC Polychain with a $42 million investment, and the team comes from DeFi OG.

Ways for retail investors to participate?

1. Participate in the current testnet's Galxe activity https://t.co/WFJyfwDiSC

2. Prepare mainstream assets such as ETH/USDC, there will be a wave of mining similar to Blast/Manta

3. Those with technical capabilities can run nodes (open to the general public later)

4. NFT series (but the price of each series is currently very high, and the rights have not been announced)

Berachain's three-token model

1. $Bera: Gas token. Users can obtain it through liquidity staking after the mainnet launch (similar to the current Blast/Manta gameplay)

2. $BGT: Governance token. BGT can be obtained by staking Bera, and it is non-transferable and non-tradable, but can be unidirectionally exchanged for Bera tokens

3. $HONEY: Berachain's native stablecoin, which can be generated through over-collateralizing mainstream tokens

These three tokens are nested with each other, which is a very beautiful design. Let's understand these three tokens from the perspective of different participants in Berachain.

From the user's perspective:

1. After the launch of the Berachain mainnet, users can stake mainstream assets to obtain Bera tokens. The assets provided by users will be further paired with $HONEY stablecoin, allowing Berachain to have deep liquidity pools for trading mainstream assets from day one.

2. After obtaining Bera tokens, the protocol further encourages users to stake and obtain BGT instead of selling. Why? BGT governance tokens can further generate three types of income through staking.

3. Staking BGT can generate "BGT tokens distributed by the protocol," "bribery fees paid by projects," and "income generated by the protocol's native applications."

4. The income generated by the protocol's native applications comes from BEX, and the income will be distributed in the form of $HONEY stablecoin. BEX combines (DEX/Perp/stablecoin CDP and other functions).

From the node's perspective:

There will be 100 nodes at launch, each acting like a member of parliament, responsible for block production, governance participation, and rallying votes to assist their own interest groups.

1. Nodes promote their election platforms to attract users to stake BGT governance tokens with them.

2. Nodes are responsible for voting users' BGT tokens for different projects/smart contracts to determine how many BGT tokens they can receive each period (BGT tokens can be used to attract users to play applications).

3. Nodes distribute the "BGT tokens distributed by the protocol reward" and "bribery fees paid by projects" to users according to their election platforms.

From the project's perspective:

The BGT rewards distributed by Berachain each period are the best user acquisition budget for the project, similar to the current ve model. Berachain is playing from the perspective of the entire chain.

1. Projects rally nodes to have them vote for their smart contracts with BGT to receive rewards each period as an incentive.

2. Projects use high APY as advertising to attract users.

3. The more users participate in the project, the initial user acquisition is completed, and the network effect begins.

Deep discussion direction of Berachain

1. The launch of Berachain will create a huge pump to drive up the price of Bera. The first force: those who want to participate in the Berachain ecosystem/project need to buy Bera to obtain BGT; the second force: speculative retail investors want to obtain more BGT; the third force: Berachain projects promote and push up the price of BGT, making the ecosystem projects joyful due to APY.

2. Berachain is the first to play the ve model from the perspective of the chain to integrate the interests of the ecosystem. Different from playing ve from the project's perspective, it has highlights. One is that the valuation of the chain is much higher than that of the project, creating a larger pump; the second is the addition of the role of nodes. Nodes are no longer just maintaining network security, but are truly rallying and coordinating retail investors and projects on Berachain.

3. Honey stablecoin is born with a silver spoon, and the most difficult part of stablecoins is having scenarios and maintaining anchoring. Without scenarios, there is no network effect. The scenario for Honey comes from being the "distributed token of income generated by the protocol's native applications." Assuming there are 100,000 BGT stakers, Honey will have 100,000 holders; the main anchoring of Honey is through users over-collateralizing mainstream assets (ETH/USDC, etc.) staked to Berachain, which will be paired with Honey stablecoin, so on Day 1, Honey will have a huge pool.

Feel free to add fun and worthy deep discussions about Berachain, and I also hope to hear about possible negative spiral scenarios for Berachain.

Join my community and focus on the opportunities in the Berachain ecosystem: https://t.co/uB0u0bwJRK

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。