Recently, the first stage of governance has been launched on the Berachain mainnet, which is based on Proof of Liquidity (PoL). This means that the protocols on the chain can apply to the foundation for the issuance of $BGT tokens. This step is seen as a major breakthrough in driving the PoL flywheel. Sky Protocol (formerly MakerDAO), with a TVL of nearly $5 billion, has also announced the launch of the Polaris AI agent framework that combines Proof of Liquidity, making DeFi more accessible. Additionally, Berachain has announced the appointment of former Polygon CTO Paul O'Leary as its new CTO.

Is the launch of BGT issuance the first step of a massive flywheel?

The BGT issuance flywheel on the Berachain is the core operating logic of Proof of Liquidity (PoL), which will closely align the interests of users, validators, and protocols. BGT is a soul-bound token that cannot be traded on the market, but can only be obtained by participating in specific activities (such as providing liquidity) within the ecosystem. BGT can be burned and converted to BERA (the fuel token of Berachain) at a 1:1 ratio, but this is a one-way operation, and BERA cannot be converted back to BGT.

Users holding BGT can participate in the governance of Berachain, such as voting to determine which liquidity pools can receive BGT issuance. The launch of the first stage of governance is equivalent to starting to activate this massive flywheel effect, and the bribery effect will begin to ferment.

It is understood that more than 500,000 $BGT will be issued per week, with a theoretical annual inflation rate of less than 10%, and more than 11 protocols have already applied.

Legacy DeFi protocol launches AI agent framework on Bera

As one of the representatives of DeFi, Sky Protocol has always been keeping up with the times and has launched the Sky Agent Framework agent framework. According to the official statement, Polaris is the first deployment of the Sky Agent Framework on a chain other than the Ethereum mainnet. Polaris aims to deploy $75 billion of USDS to the Berachain ecosystem, combining one of the most powerful liquidity engines in DeFi with Proof of Liquidity.