Odaily Planet Daily News Berachain announced that it will officially launch the "Proof-of-Liquidity" (PoL) system today, marking the start of the first phase of on-chain governance.
The PoL system aims to distribute its governance token BGT in a decentralized manner by incentivizing users to provide DeFi liquidity for Berachain. Unlike the traditional PoS model, users can pledge their assets to a designated liquidity pool to obtain non-transferable BGT for participation in governance and reward distribution. Validators rely on user-entrusted BGT to enhance their consensus influence, and network security is thus deeply bound to ecological liquidity.
Currently, PoL will be deployed from some DEX liquidity pools and will be expanded to more reward vaults in the future. Before the launch of the mainnet, Berachain has accumulated a total locked amount of more than US$3 billion through its Boyco liquidity platform, and the relevant funds will be allocated to the PoL stage.