The rise of Layer-1 protocols has brought innovative projects to the spotlight. One of the most intriguing is Berachain, a Layer-1 blockchain developed from an NFT collection. In this article, Unich Analysis takes a deep dive into Berachain and the unique aspects that make it stand out.
What is Berachain?
Berachain is an EVM-compatible Layer-1 blockchain built using Cosmos SDK, leveraging Tendermint and BFT (Byzantine Fault Tolerance) consensus mechanisms. Originating from the popular Bong Bears NFT collection, Berachain quickly caught the blockchain community’s attention. Its journey from a meme-inspired NFT collection to a fully developed blockchain underscores the power of creativity, innovation, and community in the blockchain space.
Origins and History
Berachain was developed by the creators of the Bong Bears NFT collection, which launched in 2021. Known for its adorable, humorous bear characters, Bong Bears combined meme culture with a strong promotional push from Olympus DAO. Recognizing the potential of blockchain, the Bong Bears team decided to create Berachain, a standalone blockchain supporting DeFi applications and aiming to build a robust ecosystem.
Berachain’s Operating Model
Berachain uses a unique consensus mechanism called Proof of Liquidity (PoL), which is designed to prevent Sybil attacks and encourage decentralization.
Key Features of Proof of Liquidity (PoL):
- Multi-token Staking: Berachain allows users to stake popular tokens like wETH, wstETH, and wBTC in “consensus” vaults, enhancing network liquidity and minimizing the risk of Sybil attacks.
- Delegation to Validators: Users can stake tokens in consensus vaults to delegate transaction validation to validators.
- Rewards: Validators are rewarded in BERA tokens, proportional to the amount of delegated tokens.
- Sybil Attack Prevention: Multi-token staking makes it more costly and challenging to create fake accounts, enhancing network security.
Polaris EVM
- Goal: Polaris EVM allows developers to deploy Ethereum-based DeFi applications on Berachain with ease.
- Mechanism: As an EVM-compatible framework integrated into the Cosmos ecosystem, Polaris EVM facilitates efficient smart contract development on Berachain.
- Benefits: Polaris EVM makes it simple and flexible for developers to create DeFi applications on Berachain, bridging Ethereum’s capabilities to Berachain’s ecosystem.
CometBFT
- Goal: Ensures the safe replication of applications across the Berachain network.
- Mechanism: CometBFT is a consensus tool that ensures all network nodes record transactions in the same order.
- Safety Conditions: CometBFT maintains safety if fewer than one-third of nodes fail, ensuring consistency (all nodes have access to the same transaction log).
BERA Token Information
Berachain features a Tri-Token System, including three main tokens:
- BERA
- Function: Primary token for transaction fees on the Berachain network.
- Inflation: 10% annual inflation.
- Role: BERA supports network operations and incentivizes ecosystem participation.
- HONEY
- Function: Stablecoin on Berachain, backed by staked assets within the network.
- Role: Used for spot trading, derivatives, and other DeFi applications on Berachain.
- BGT
- Function: Governance token, designated as a non-transferable ERC-721 NFT.
- Benefits: BGT holders can vote on governance matters and earn additional transaction fee rewards.
- Role: BGT plays a vital role in network governance, encouraging community-driven decision-making.
Details of each token’s tokenomics are not yet fully disclosed. Unich Analysis will provide updates once the project releases more information.
Guide to Participating in the Berachain Airdrop
Berachain is currently in its testnet V2 phase, giving early participants a chance to qualify for potential airdrops.
Steps to Participate:
- Add Testnet V2 Network:
- Network: Berachain bArtio
- RPC URL: bartio.rpc.berachain.com
- Chain ID: 80084
- Currency Symbol: BERA
- Block Explorer: bartio.beratrail.io
- Hold at least 0.01 ETH in your wallet.
- Get Testnet Tokens:
- Visit the faucet: bartio.faucet.berachain.com
- Interact with Berachain Dapps:
- Swap/Add Liquidity: bartio.bex.berachain.com
- Mint HONEY: bartio.honey.berachain.com
- Lending: bartio.bend.berachain.com
- Trade: bartio.berps.berachain.com
- Governance: bartio.station.berachain.com
- Explorer: bartio.beratrail.io
Development Team and Investors
While specific details about the Berachain development team remain undisclosed, it is confirmed that they are the creators of the Bong Bears NFT collection. Bong Bears’ success attests to their ability to launch community-driven NFT projects that attract widespread attention. Olympus DAO’s strong support has further validated the Berachain team’s credibility and potential.
Investors
In April 2023, Berachain completed its Series A funding round, raising a total of $42 million and valuing the project at $420 million. In March 2024, it raised an additional $100 million, boosting its valuation to $1.5 billion. The round was led by Brevan Howard Digital and Framework Ventures.
Conclusion
Berachain is a promising Layer-1 blockchain, backed by reputable investors, featuring a unique consensus mechanism, and focusing on building a thriving DeFi ecosystem. The project aims to become a leading Layer-1 blockchain in the future, contributing to the advancement of DeFi and blockchain technology. This overview from Unich Analysis provides a comprehensive look at Berachain and its potential. Thank you for reading!
