Berachain is quickly emerging as one of the most intriguing Layer 1 (L1) blockchains of 2025. Unlike many recent Ethereum Layer 2 solutions, Berachain is a standalone L1 chain that introduces a unique consensus mechanism — Proof-of-Liquidity (PoL) — while maintaining full EVM compatibility. It aims to reshape how blockchain networks achieve both security and utility, particularly in the DeFi space.
1. What is Berachain?
Berachain is a Layer 1 blockchain platform designed to be EVM-compatible, allowing developers to seamlessly build and deploy applications using the same tools and smart contracts used on Ethereum. Unlike Layer 2 rollups or sidechains, Berachain operates independently and is not reliant on the Ethereum mainnet for security or data availability.
This independence allows Berachain to introduce its own innovations and governance mechanisms while still making it easy for existing Ethereum-based projects to migrate or integrate. Developers benefit from a familiar development environment, and users can interact with applications without needing to learn a new stack.
2. Proof-of-Liquidity: A Novel Consensus Mechanism
One of the most distinctive features of Berachain is its Proof-of-Liquidity (PoL) consensus mechanism. This approach diverges from traditional Proof-of-Stake (PoS) systems by tying network security and governance directly to liquidity provision.
In a PoL system, validators and other network participants must provide liquidity to specific pools or decentralized protocols to gain voting power and earn rewards. This encourages long-term capital commitment and supports the overall health of the decentralized finance (DeFi) ecosystem on the chain.
The PoL model aims to align incentives between validators, developers, and users by ensuring that those who contribute to the network’s liquidity are also those who help secure and govern it.
3. The Berachain Token Economy
Berachain operates with a tri-token model, each serving a specific function in the ecosystem:
BARA
BARA is the native token of Berachain, used for paying transaction fees and gas. It serves the same purpose as ETH on Ethereum or AVAX on Avalanche. All on-chain interactions require BARA, making it central to everyday activity.
BGT (Berachain Governance Token)
BGT is a non-transferable governance token that is earned by staking BARA or by providing liquidity on the network. It is used to participate in governance decisions such as protocol upgrades or parameter changes. Since it cannot be bought or sold, BGT helps mitigate governance manipulation by speculators and instead rewards active network contributors.
HONEY
HONEY is Berachain’s native stablecoin, pegged to the US dollar. It is designed for use in decentralized lending, borrowing, and trading. Its role is similar to USDC or DAI, and it enables a stable medium of exchange within the ecosystem.
4. Origins and Community Roots
Berachain was born out of a community-led initiative centered around a highly popular NFT collection called Bong Bears. What began as a niche NFT project quickly evolved into a tightly-knit community with a shared vision for a new type of blockchain ecosystem. The project has since grown organically, supported by NFT collectors, DeFi builders, and active governance participants.
This grassroots origin has resulted in a vibrant and engaged community, particularly active in governance, ecosystem development, and the promotion of decentralized applications (dApps). This bottom-up growth model sets Berachain apart from more institutionally-backed blockchain launches.
5. Getting Started with Berachain
Using Berachain begins with adding the blockchain to your preferred wallet. Whether using MetaMask, Rabby, or another Web3 wallet, users can easily connect by visiting the official block explorer, barascan.com, and selecting the option to add the chain. This integration process is seamless and avoids the need for manual RPC configuration.
Once connected, users can bridge assets to Berachain using the official bridge interface. Supported assets include ETH and USDC, which can be transferred from networks such as Ethereum mainnet or Base. Upon bridging, users typically convert a portion of their funds to BARA to cover transaction fees.
Bridges from third-party platforms like Stargate and Jumper Exchange also support Berachain, offering users additional flexibility in moving assets between ecosystems.
6. Exploring the Berachain DeFi Ecosystem
Berachain’s DeFi landscape is rapidly expanding. The core hub for interacting with Proof-of-Liquidity functions includes token swapping and liquidity provision tools. Users can swap between BARA, HONEY, and other assets bridged into the ecosystem.
Several decentralized exchanges (DEXs) are already operational on Berachain, including platforms with whimsical names such as Ugab Booga and Baradrome. These DEXs offer standard trading functionality and often integrate deeper into the liquidity-based consensus system, further incentivizing user participation.
As Berachain continues to attract developers, more DeFi protocols are expected to launch on the network, spanning everything from yield aggregators to decentralized lending protocols.
7. NFT Marketplaces and Magic Eden Integration
NFTs have played a central role in Berachain’s story, and the chain’s integration with Magic Eden is a logical continuation of that legacy. Magic Eden, one of the most prominent cross-chain NFT marketplaces, added support for Berachain at launch.
Users can browse and trade Berachain-native NFTs, including new projects and collectible series minted directly on the chain. Special open edition mints are available to early adopters, offering proof of participation in Berachain’s initial phase.
This integration strengthens the network’s appeal to NFT creators and collectors, further diversifying the use cases beyond DeFi.
8. Governance and Community Participation
Governance on Berachain is carried out using the non-transferable BGT token. This model ensures that only users who are actively involved—either through staking BARA or providing liquidity—can influence network decisions. The design prevents governance capture by token whales and rewards community stewardship.
Proposals can include anything from changes to protocol parameters to upgrades or funding decisions. As the network matures, Berachain’s governance process is expected to become more decentralized and formalized, possibly including on-chain voting systems and proposal frameworks.
Conclusion
Berachain represents a fresh take on Layer 1 blockchain design. With its Proof-of-Liquidity consensus, tri-token economy, and strong focus on community and DeFi, it brings several innovative concepts to the table. While still in its early days, the project is quickly gaining traction among developers, NFT creators, and liquidity providers.
The combination of technical compatibility with Ethereum and a novel incentive structure makes Berachain a promising addition to the evolving blockchain ecosystem. As the mainnet stabilizes and more applications go live, the platform’s long-term potential will become increasingly clear.
Technology & Architecture – 4.5/5
Proof-of-Liquidity (PoL)
Instead of relying on traditional Proof-of-Stake (PoS), Berachain leverages Proof-of-Liquidity, a mechanism where validators and users are rewarded for providing liquidity, not just locking up tokens. This means:
- Validators, liquidity providers, and borrowers are all incentivized to keep the ecosystem active and capital-efficient.
- PoL aligns network security with on-chain utility, creating a dynamic and participatory economy.
EVM Compatibility & Developer Tools
Berachain is fully EVM-compatible, making it easy for developers to port over dApps from Ethereum or build new ones using familiar tools.
- Built using BeaconKit, a modular framework running on CometBFT (a fork of Cosmos’ Tendermint).
- Quick integration with existing tools like MetaMask, Phantom, and Rainbow wallets.
Three-Token Model:
- BERA – The native gas token. Used for transaction fees and staking.
- BGT (Berachain Governance Token) – A non-transferable governance token earned through ecosystem participation (staking, liquidity, vaults).
- HONEY – A USD-pegged stablecoin used for lending, borrowing, and DeFi applications.
This structure creates a circular economy where value flows through multiple layers of participation, not just speculative holding.
Team & Community – 2/5
One of the project’s most polarizing aspects is the completely anonymous team, known only by pseudonyms:
Smokey the Bera- Homme Bera
- Dev Bear
- Papa Bear
- Baloo the Bera (reportedly former Head of Engineering at Mysten Labs)
While their deep connections in DeFi and NFT circles — notably the Bong Bears NFT project — lend them credibility, the lack of transparency poses a significant risk for long-term investors.
Tokenomics & Market Performance – 3.5/5
Token Launch
The BERA token launched in February 2025, following the launch of the mainnet and a retroactive airdrop to early community members and contributors.
Token Distribution:
Although the full tokenomics breakdown (vesting schedules, foundation/team allocations) has not been publicly audited yet, the three-token structure promotes sustainable participation.
Price History & Market Metrics:
Based on historical CoinMarketCap data (Jan 23 – Mar 24, 2025):
- Launch Price (Late Jan): ~$5.90
- March Price Range: $6.05 – $6.89
- Current Price (as of Mar 22): ~$6.77
- Market Cap: ~$728M
- Volume (daily avg): $50M–$150M
Price Chart Summary: The token has remained surprisingly stable, showing healthy liquidity and investor confidence — a positive sign considering the speculative nature of new L1 tokens.
Ecosystem Overview – 4/5
Despite being newly launched, Berachain’s ecosystem is expanding rapidly:
DeFi
- Official DEX: Baradrome
- Other DEXes: BoogaSwap, Ugab Booga
- Support for popular bridges like Jumper Exchange and Stargate
- Easy cross-chain bridging and swapping between BERA, HONEY, USDC, etc.
NFTs
- Berachain partnered with Magic Eden at launch.
- Native collections like Bong Bears with notable floor prices (over 100 ETH pre-chain).
- Early commemorative NFTs available via Magic Eden.
Community & Origins
Berachain is community-driven. Its roots in the NFT space (Bong Bears) evolved into a fully-fledged L1 blockchain project. The existing culture around DeFi, governance, and gamification makes it stand out from more sterile, institution-led chains.
Risks & Uncertainties
Despite its strong momentum, Berachain is not without risks:
- Anonymous team creates uncertainty around governance and accountability.
- Tokenomics transparency still limited – no public audit of emissions, vesting, or treasury strategy.
- High expectations: With so much hype, the chain will need consistent delivery and developer adoption to meet its potential.
Final Verdict: 3.8 / 5 – High Potential, Watch Carefully
Berachain is not just another Ethereum clone. It brings fresh economic incentives to the L1 space through Proof-of-Liquidity and a uniquely structured token system. Early signs — price stability, a growing ecosystem, strong community energy — are all positive.
However, its anonymous founding team and lack of full tokenomics disclosures make it a high-risk, high-reward play. For active DeFi users and early adopters, Berachain is a chain to watch — or participate in. But for conservative investors, waiting for more transparency might be the wiser move.
TL;DR:
- Unique Consensus: Proof-of-Liquidity encourages active use, not passive staking.
- EVM-Compatible: Easy onboarding for developers.
- 3-Token Economy: Separates utility, governance, and stability.
Anonymous team and limited tokenomics data are red flags.- Early price performance shows promise, but it’s still early days.