Sometimes "dreams are just dreams", so it's true that "the more you hope, the more disappointed you'll be".
Berachain's "token explosion" tokenomics and airdrop are causing controversy. Image: Collected from X
Tokenomics Unveiled
Berachain announced its tokenomics last night (02/05). In which, BERA is designated as the gas token and staking of the network, while BGT is the governance token and economic incentive. BGT cannot be transferred and can only be obtained by participating in activities on the Berachain ecosystem.
Full tokenomics are available at: https://t.co/icA4KWVTqW pic.twitter.com/qz3GZDPnkI
— Berachain Foundation 🐻⛓ (@berachain) February 5, 2025
The initial total supply is 500 million BERA, with an annual inflation rate of 10%.
Token allocation is as follows:
- 48.9% of the total supply is for the community, including:
Airdrop for Berachain NFT holders (15.8%)
Support for ecosystem research and development (20%)
Future initiatives (13.1%)
- 34.3% is for investors in rounds such as Seed, Series A, Series B.
- 16.8% is for project advisors and core members of the ecosystem.
Regarding the token vesting schedule:
- 100 million BERA will be unlocked immediately upon mainnet launch.
- The remaining 400 million BERA will follow the schedule:
First year: No tokens will be unlocked (cliff period).
After 1 year: 1/6 of the tokens (~66.67 million BERA) will be unlocked immediately.
The remaining tokens will be unlocked linearly over the next 24 months.
Airdrop Information
At the same time as the tokenomics release, Berachain has "dropped the link" to check the airdrop for community members, applications, and liquidity providers. The airdrop rewards will be sent to the eligible wallets.
Eligible airdrop recipients include:
Testnet users.
Participants who provided liquidity before the launch of Berachain's Boyco initiative.
Active contributors on social media platforms.
Owners of NFTs in the ecosystem such as Bong Bears.
2% of the total airdrop allocation is for BNB holders on the Binance exchange.
Binance is one of the first centralized cryptocurrency exchanges to list the BERA token at 8:00 PM tonight (02/06/2025), coinciding with the project's mainnet launch and token generation event, as reported by Coin68.
Henlo, and furthermore, your tokens are coming. pic.twitter.com/b9isn5XhiU
— Berachain Foundation 🐻⛓ (@berachain) February 5, 2025
Airdrop Causing "Existential Crisis"
After the announcement of tokenomics and airdrop, Berachain faced a barrage of criticism overnight. The hashtag #berascam quickly appeared on X, as many users expressed dissatisfaction that they did not meet the eligibility criteria for the airdrop or received a much smaller amount of BERA than the effort they had put in over the past year.
A verified account expressed frustration, claiming to be one of the first 100 users of Berachain but still received a zero balance.
Does it matter if you were the first 100 people on the blockchain early users got zero
— SaulyAries.eth (@AriesSauly) February 5, 2025
Another user complained that he had conducted over $1 million in test transactions on the V1 testnet (Artio) but did not receive a single BERA token
I had over $1M in test transaction on V1 (Artio) and yet Im not eligible for an airdrop..
— J. Peg Getty | $METIS 🌿| sideshift.ai/a/trade (@JPeg_Getty) February 6, 2025
NICE
The account holder @RunesChad even "swore" that he would never farm any airdrop again after his terrible experience with Berachain.
I will never farm any airdrop again. Look what i got from fkn @berachain ... absolute shame! #berascam
— RunesChad (@RunesChad) February 5, 2025
They didn't even round up!!! 🤣🤡 pic.twitter.com/KmpDFllgVa
About Berachain
Berachain is a blockchain built on a Proof of Liquidity mechanism, aiming to optimize liquidity and community participation in the ecosystem. The distinctive feature is that Berachain did not originate from a traditional blockchain, but from an NFT community. The project has raised over $142 million to develop its platform.
Berachain originated from Bong Bears, an NFT collection launched in early 2021. This collection uses a rebasing mechanism, where NFT owners can receive additional BERA tokens through airdrop events called rebasements.
From the success of Bong Bears, the NFT ecosystem has gradually expanded with the emergence of Bond Bears, Boo Bears, Baby Bears, Band Bears, and Bit Bears. The communities around these NFTs have grown increasingly strong, attracting more participants to Berachain. It is expected that there will be a final rebasement when the Berachain mainnet is officially launched.
The project was founded by 3 anonymous co-founders, all using "bear" themed pseudonyms:
Smokey the Bear
Homme Bera
Dev Bear
Unlike other blockchains that focus solely on technology, Berachain has proactively attracted liquidity before the mainnet launch. Two notable initiatives are:
Pre-launch vaults: Pre-launch asset vaults.
Boyco: Berachain's pre-launch liquidity platform.
Users can deposit assets such as stablecoins, Bitcoin, Ethereum into the system to accumulate rewards before the mainnet launch. This plan helps ensure ample liquidity as soon as the network is launched, enabling decentralized applications (dApps) and users from day one.
Compiled by Coin68
