Berachain (BERA) Explained: The EVM‑Compatible, Proof‑of‑Liquidity Crypto Coin
Jan, 31 2025
Berachain (BERA) Features Comparison Tool
Proof-of-Liquidity (PoL)
Unlike traditional Proof-of-Stake where tokens are locked, PoL allows users to earn staking rewards while keeping tokens liquid for trading and DeFi participation.
BERAEVM Compatibility
Runs an EVM-identical runtime using forked Geth/Reth clients, allowing seamless deployment of Ethereum dApps with zero code changes.
BERABerachain vs Ethereum Comparison
| Metric | Berachain | Ethereum |
|---|---|---|
| Consensus | Proof-of-Liquidity (BeaconKit + CometBFT) | Proof-of-Stake (Casper) |
| Token used for gas | BERA | ETH |
| EVM compatibility | Identical (forks of Geth/Reth) | Native |
| Average tx fee (testnet) | ≈ $0.0008 | ≈ $2.30 |
| Throughput (TPS) | ~10,000 (theoretical) | ~30 (current) |
| Liquidity lock-up requirement | No (tokens remain tradable) | Yes (staked ETH locked) |
BERA Token Uses
- Gas payments for transactions
- Staking and PoL participation
- Governance voting rights
Supply Cap: 500 million BERA
HONEY Token Role
- Mint-and-redeem operations
- Rewarding liquidity providers
- Governance for protocol upgrades
Utility: Supports liquidity incentives and protocol governance
Current Status
Berachain is currently in testnet phase with a mainnet beta expected by Q4 2025. As of October 2025, the network has attracted over 150,000 active addresses and is backed by top VCs including Placeholder, Galaxy, and Lightspeed.
Quick Take
- Berachain is an EVM‑identical Layer‑1 blockchain that uses a novel Proof‑of‑Liquidity (PoL) consensus.
- Its native coin, BERA, acts as gas, staking token and liquidity catalyst.
- PoL lets users earn rewards while keeping tokens free for trading, unlike traditional PoS.
- Berachain is fully compatible with Ethereum tools, so existing dApps can migrate with zero code changes.
- As of Oct2025 the network is still in testnet, with a mainnet launch pending and strong VC backing.
When you hear the name Berachain is a high‑performance, EVM‑identical Layer1 blockchain that introduced a unique Proof‑of‑Liquidity (PoL) consensus mechanism. Built on the modular consensus framework BeaconKit, Berachain aims to solve the liquidity‑fragmentation problem that plagues most DeFi‑focused chains. Its native token, BERA, fuels transaction fees, secures the network, and unlocks liquidity incentives-all while staying liquid for traders.
From NFT Roots to a Full‑Scale Blockchain
The project grew out of the Bong Bears NFT collection. Those cannabis‑themed digital bears featured a "rebasing" mechanic that rewarded long‑term holders with extra NFTs. The engaged community created a cultural backbone that later attracted venture capital and technical talent. When the team realized that DeFi protocols suffer from capital lock‑up under traditional Proof‑of‑Stake, they pivoted to a liquidity‑first design and birthed Berachain.
Core Architecture: EVM‑Identical and BeaconKit
Berachain runs a virtually unchanged Ethereum Virtual Machine (EVM). Execution clients are light forks of Geth and Reth, meaning developers can use familiar tools-Hardhat, Remix, Metamask-without any code rewrite. When Ethereum upgrades (e.g., the Dencun hard fork), Berachain can adopt the changes immediately, preserving compatibility across RPC namespaces.
The consensus layer sits on BeaconKit, a modular SDK that blends CometBFT’s fast finality with EVM‑friendly hooks. BeaconKit lets the network achieve single‑slot finality while keeping the execution environment identical to Ethereum. This modularity also makes it easier for future forks or sidechains to inherit the same high‑throughput properties.
Proof‑of‑Liquidity: Why It Matters
Traditional Proof‑of‑Stake requires validators to lock tokens for days, weeks, or even months. Locked capital cannot participate in DeFi, reducing overall market liquidity. Berachain’s PoL flips that script. Users stake BERA, but the staked tokens remain in liquidity pools, ready for swaps, lending, or yield farming. The network rewards liquidity providers with BERA and a secondary token called HONEY, which is used for mint‑and‑redeem operations.
PoL aligns three groups:
- Validators - they earn fees for securing the chain, but their reward pool is funded by active liquidity rather than inflation.
- Protocol developers - their contracts can draw on a deeper pool of capital, lowering slippage and improving price stability.
- Everyday users - they keep their tokens liquid, earn staking rewards, and can still trade or provide collateral.
This design reduces the "liquidity fragmentation" that PoS chains create, making Berachain a natural home for high‑frequency DeFi apps.
BERA Token: Functions and Economics
The native coin, BERA, is capped at 500million tokens. Its roles include:
- Gas payments - every transaction costs BERA, similar to ETH on Ethereum.
- Staking & PoL participation - users lock BERA into liquidity pools and earn rewards.
- Governance - token holders can vote on protocol upgrades, fee structures, and treasury allocations.
Because PoL doesn’t require a lock‑up period, BERA’s circulating supply stays dynamic, which helps keep transaction fees low (often under $0.001 in testnet conditions). The fixed supply also provides a clear upper bound for inflation‑adjusted metrics.
Supporting Tokens and Early Apps
Beyond BERA, the ecosystem introduces HONEY, a utility token used primarily for minting and redeeming liquidity positions. Early decentralized applications (dApps) such as BEX showcase how smart contracts can tap into PoL incentives. These reference implementations serve as blueprints for developers wanting to build DeFi primitives-automated market makers, lending protocols, or synthetic assets-on Berachain.
How Berachain Stacks Up Against Ethereum
| Metric | Berachain | Ethereum |
|---|---|---|
| Consensus | Proof‑of‑Liquidity (BeaconKit + CometBFT) | Proof‑of‑Stake (Casper) |
| Token used for gas | BERA | ETH |
| EVM compatibility | Identical (forks of Geth/Reth) | Native |
| Average tx fee (testnet) | ≈ $0.0008 | ≈ $2.30 |
| Throughput (TPS) | ~10,000 (theoretical) | ~30 (current) |
| Liquidity lock‑up requirement | No (tokens remain tradable) | Yes (staked ETH locked) |
The table highlights why many DeFi developers are eyeing Berachain: lower fees, higher throughput, and a consensus that keeps capital fluid.
Current Status, Roadmap, and Funding
Berachain entered its public testnet in early 2024 and has since attracted over 150,000 active addresses. The original mainnet launch was slated for late 2024, but technical refinements pushed the target to mid‑2025. As of October2025 the network remains in testnet, with a “Mainnet Beta” expected by Q42025.
Funding comes from prominent crypto‑focused VCs such as Placeholder, Galaxy, and Lightspeed. Their involvement signals confidence in the PoL model and the broader vision of a liquidity‑centric Layer‑1.
Getting Started: How to Acquire and Use BERA
- Set up an EVM‑compatible wallet (MetaMask, Trust Wallet, or Coinbase Wallet). Ensure the network settings point to Berachain’s testnet RPC endpoint (provided on the official docs).
- Obtain BERA via the official faucet or by bridging from Ethereum using the Berachain bridge. Bridges lock ETH on Ethereum and mint wrapped BERA on the testnet.
- Stake or provide liquidity through the Berachain dashboard. Choose a pool (e.g., BERA/HONEY) and approve the transaction.
- Earn rewards in BERA and HONEY. Rewards are claimable at any time because your tokens stay liquid.
- Explore dApps like BEX or upcoming AMM launches. Because the chain is EVM‑identical, you can interact with them using the same UI you’d use on Ethereum.
When the mainnet goes live, the same steps will work on the production network-just swap the RPC endpoint.
Potential Risks and Things to Watch
- Mainnet delay - the project is still on testnet; real‑world security and decentralization levels are unproven.
- Validator decentralization - early PoL validators are a small set of stakeholders; watch for upcoming decentralization milestones.
- Bridge security - as with any cross‑chain bridge, smart‑contract bugs could expose funds.
- Regulatory environment - liquidity‑focused models may attract scrutiny in some jurisdictions.
Staying updated via the official Discord, Twitter, and community newsletters helps mitigate these risks.
Frequently Asked Questions
What makes Proof‑of‑Liquidity different from Proof‑of‑Stake?
PoL lets users earn staking rewards while their tokens stay in active liquidity pools, so the capital can still be traded, lent, or used in DeFi. PoS, by contrast, requires tokens to be locked for a fixed period, removing them from the market.
Is Berachain fully compatible with existing Ethereum dApps?
Yes. Because it runs an EVM‑identical runtime using forked Geth/Reth clients, any smart contract that works on Ethereum will deploy on Berachain without code changes.
How can I acquire BERA today?
Join the official testnet faucet, bridge ETH via the Berachain bridge, or purchase BERA on emerging DEXs that list the testnet token. Remember to use a wallet that supports custom RPC endpoints.
When is the mainnet launch expected?
The team aims for a Mainnet Beta by Q42025, followed by a full production launch early 2026, assuming no major technical setbacks.
What are the main use‑cases for the HONEY token?
HONEY is used for mint‑and‑redeem operations, rewarding liquidity providers, and as a governance token for certain protocol upgrades within the Berachain ecosystem.
Darius Needham
January 31, 2025 AT 10:54Berachain’s Proof‑of‑Liquidity is a clever twist on the usual staking model; it lets tokens stay active in the market while still securing the network. The native BERA token serving three roles-gas, staking, and governance-makes the ecosystem feel tight and efficient. I’m especially interested in how the BeaconKit consensus could be adapted for other modular chains. The theoretical 10k TPS is eye‑catching, though real‑world numbers will tell the true story. If the testnet continues to attract 150k+ addresses, that’s a solid sign of community traction.
carol williams
January 31, 2025 AT 12:11From a technical standpoint, the forked Geth/Reth clients mean developers can port existing Solidity contracts without any rewrites, which is a huge productivity boost. The documentation also emphasizes that any Ethereum hard fork will be mirrored almost instantly, preserving compatibility. It’s an elegant solution for teams wary of getting left behind by Ethereum upgrades.
jit salcedo
January 31, 2025 AT 13:27One might wonder whether the PoL consensus truly decentralizes power or simply shifts it to a different class of liquidity providers. If the same whales dominate both the liquidity pools and validator set, the promised fluidity could become an illusion. Moreover, the reliance on bridges introduces a vector for attacks that could undermine the entire ecosystem. Still, the philosophical premise of keeping capital mobile aligns with the broader DeFi ethos of composability. It’s a bold experiment that may either rewrite staking theory or become a cautionary tale about over‑optimism in protocol design.
Fionnbharr Davies
January 31, 2025 AT 14:44While the PoL model sounds innovative, practical adoption will hinge on clear incentives for everyday users. If the reward rates aren’t competitive with traditional staking or yield farming, liquidity might not stay as fluid as advertised. Community education is also crucial; a lot of users still equate "staking" with locked assets.
Narender Kumar
January 31, 2025 AT 16:01In formal terms, the tokenomics appear sound.
Anurag Sinha
January 31, 2025 AT 17:17i think the bridge security is kinda shakey, u know? many ppl forget that cross‑chain bridges have been hacked a lot lately, so watever you do double‑check the smart contracts.
Raj Dixit
January 31, 2025 AT 18:34It’s a decent concept, but we’ll see.
Nilesh Parghi
January 31, 2025 AT 19:51The inclusive design of Berachain could lower entry barriers for newer developers, especially those who have been intimidated by the steep learning curve of Ethereum upgrades. By providing a familiar EVM environment, the platform encourages experimentation without the fear of breaking existing codebases.
C Brown
January 31, 2025 AT 21:07Oh great, another layer‑1 promising to solve all our problems while still being a testnet. Let’s count the obvious: first, the transaction fees are touted as “under a cent,” which is nice until you realize that any significant activity will still cost something, and on a network with a tiny validator set, that cheapness is just a mirage. Second, the theoretical 10,000 TPS sounds impressive, but no one’s seen that number in practice-testnet numbers are notorious for being inflated. Third, PoL claims to keep your tokens liquid, yet you’re still required to lock them in specific pools; liquidity is only as good as the pool’s health, which can evaporate overnight if a large whale pulls out. Fourth, the bridge mechanism that brings ETH into BERA is another attack surface; bridges have been the Achilles’ heel of many ecosystems, and the “official” bridge is no exception. Fifth, the governance model gives BERA holders voting rights, but unless token distribution is truly decentralized, you’ll end up with the same old power concentration under a new name. Sixth, the team’s delay in launching mainnet indicates underlying technical hurdles-if the core consensus can’t be ironed out, why should anyone trust the network? Seventh, the promise that “any Ethereum hard fork will be mirrored instantly” is technically feasible, but it also means you inherit every one of Ethereum’s bugs and contentious upgrades without the ability to opt-out. Eighth, the marketing hype around VC backing (Placeholder, Galaxy, Lightspeed) is a classic signal that the project is more about fund‑raising than building sustainable infrastructure. Ninth, the token supply cap of 500 million sounds reasonable, yet the vesting schedules and future token releases are vague, leaving room for inflationary pressure later. Tenth, the ecosystem’s supporting token HONEY adds another layer of complexity-users now have to manage two tokens, each with its own risk profile. Eleventh, all the documentation assumes users are already familiar with EVM tooling; it glosses over the learning curve for newcomers who might be attracted by the low fees. Twelfth, the testnet’s active address count (150 k) is impressive on paper but could be inflated by bots or airdrop hunters. Thirteenth, the roadmap pushes mainnet beta to Q4 2025 and full launch to early 2026, which is a moving target that may keep slipping. Finally, the whole concept hinges on liquidity staying fluid, which is a fragile equilibrium-if market conditions change, the whole PoL premise could crumble. In short, Berachain is an interesting experiment, but it’s riddled with the same pitfalls that plague every new layer‑1, wrapped in buzzwords and optimistic projections.
Raphael Tomasetti
January 31, 2025 AT 22:24From a jargon‑heavy perspective, the integration of BeaconKit and CometBFT essentially decouples consensus finality from execution, enabling modular upgrades without disrupting the EVM runtime.
Jenny Simpson
January 31, 2025 AT 23:41It’s fascinating how every new chain claims to be the answer to DeFi’s liquidity woes, yet they all end up replicating the same old centralization patterns under a different banner.
Sabrina Qureshi
February 1, 2025 AT 00:57Wow!!! So many details!!! I can’t even keep up!!!
Rahul Dixit
February 1, 2025 AT 02:14Remember when every so‑called “innovation” turned out to be a re‑branding of old ideas? Berachain’s PoL may look fresh, but the underlying incentive structures could still be vulnerable to manipulation by coordinated actors.