Berachain starts Onchain-Governance with the introduction of Proof of Liquidity
- Berachain introduces the Proof of Liquidity Mechanism and thus starts phase 1 of its on-chain government.
- Proof of Liquidity provides liquidity providers a voting right and filters not contributing participants.
Berachain has now opened a new chapter and today introduced its proof-of-liquidity (pol) system, which marks the beginning of phase 1 of on-chain governance.
This start is the core of a new path to create an open and participatory blockchain ecosystem, and not just an additional function. Through the use and acquisition of BGT – a unique token used for voting – the user community can now take part in the decision -making process via Pol.
In the real world, this is comparable to neighbors who can vote on the construction of a new road because they once paid for the repairs. Here crowdfunding is handled through crypto liquidity, and their voices can influence the course of the developing technologies.
UPDATE: @Berachan (BERA) TO LAUNCH ITS PROOF-OF-LIQUIDITY (POL) SYSTEM TODAY, MARKING THE START OF PHASE 1 FOR ITS ONCHAIN GOVERNANCE
— BSCN Headlines (@BSCNheadlines) March 24, 2025
Liquidity as power: where voices flow with capital
Proof-of-liquidity is not a new concept, but Berachain has turned it into something more lively. Essentially, users who provide liquidity to the minutes receive BGT who serve as a voting instrument in on-chain governance. So the more active someone contributes liquidity, the more influential his voice will be.
In phase 1, users can submit suggestions that determine the direction of development and help shape the rules of the ecosystem.
It is fascinating that this technique also filters out “random” voices. Only those who contribute liquidity can talk about where the project will develop.
Behind the scenes: preparatory work that led to pole
Actually, the whole thing has been home to it for a long time. On February 12, 2025, Berachain expanded its artio test network. With validator sets, staking incentives and more extensive governance mechanisms, the update was not a joke. So today’s polarity did not come out of nowhere, but was the result of careful preparation.
On the other hand, the funds of $ 100 million paid on December 19, 2024 are also an important fuel. The funds were provided to strengthen the development of developer tools, security systems and the decentralized application ecosystem.
The main focus is still the same, innovation in consensus and governance by the pole approach, which you believe from other blockchain networks.
Beyond voting: The growing trade power of Berachain
Pol also opens the way for cross -platform cooperation. An example that CNF reported is the integration of Berachain with orderly. With this integration, the DEX protocol can provide improved liquidity directly via the POL model and an Omnicain order book. It is even more interesting that users can constantly trade with more than 100 pairs of investments with up to 50 times levers.
Imagine that you could go in dozens of assets with maximum flexibility long or short, and that in an integrated environment through on-chain government. It is not just about coordination, but also about creating a fully networked and efficient commercial ecosystem.
Phase 1 is only the beginning
Phase 1 is only the beginning for a more complicated administrative system in the following phases, not the end. Later there will be a system for voting rights transmission, upgrade contracts and even a voting mechanism to finance projects in the ecosystem.
In a way, Berachain wants to create a “digital governance” that not only exists on paper, but is really controlled by its own community.
But the requirements are high. To manage the voices of thousands of users to avoid dominance of the whales and maintain the quality of the decisions are things that have to be constantly monitored.
At the editorial deadline, BERA’s course was around $ 7.01, which corresponds to an increase of 4.55 % in the last 24 hours and 6.49 % in the last 7 days.
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