The much-anticipated Layer 1 Berachain is set to launch its mainnet in two days' time, according to the Berachain Foundation.
“Berachain's mainnet will launch on February 6th, 2025,” the Berachain Foundation posted to X on Tuesday. “TGE will occur at the same time as mainnet launch. Tokenomics and checker tomorrow.”
Berachain is an Ethereum Virtual Machine-compatible Layer 1 blockchain built on the Cosmos SDK that uses a variant of delegated proof of stake consensus called “proof of liquidity,” an attack resistance mechanism meant to harmonize staking and align incentives between security and liquidity.
Berachain rolled out its public test network named Artio in January 2024, with its mainnet initially planned for release in Q2 last year. Upon launch, Berachain will be supported by custodians, cross-chain messaging and bridging protocols and data availability solutions.
Berachain’s bear-themed crypto project is run by a group of pseudonymous co-founders known as Homme Bera, Dev Bear, Papa Bear and Smokey the Bera. Under development since late 2021, Berachain is the co-founders' main foray into the industry after the NFT project “Bong Bears” and other associated collections.
In April 2024, Berachain announced it had raised $100 million in a Series B funding round led by Framework Ventures and the Abu Dhabi branch of Brevan Howard Digital. The project previously raised $42 million in a private token round led by Polychain Capital in April 2023.
Unlike typical proof of stake chains, where (outside of external liquid staking service providers) users have to choose between contributing to security by staking with a validator or providing on-chain liquidity on a DeFi platform, proof of liquidity means users can only contribute to network security by first doing the “work” of providing liquidity to a set of DeFi primitives, the team said last year.
In Berachain’s tri-token system, users earn BGT staking tokens by providing liquidity to on-chain protocols such as a native DEX or stablecoin lending platform.
“BGT is naturally illiquid and soulbound, and cannot be market bought, only earned,” the team added, with rewards controlled via validators and the network’s governance process. However, BGT can be burned for the network’s native gas token, bera, in a one-way process.
Validators then direct the staking rewards back into the Berachain ecosystem across multiple supported protocols to keep the network liquid. Users delegating BGT tokens to validators earn fees in honey tokens — Berachain’s native stablecoin — from protocols on the network, as well as “bribes” from the validators they are delegated to.
“Through their contribution to liquidity on the chain, users bootstrap its security,” the team said, while also earning rewards. Protocols passing governance votes can integrate their smart contracts into Berachain's liquidity pool, attracting liquidity at reduced costs and driving capital efficiency. And “for Cosmos validators, there’s an opportunity to attract new capital and delegates from the EVM world, which has typically been a major restriction for growth in the Cosmos ecosystem,” it added.
The Block reached out to Berachain for comment.
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