@Sakura please summarize this article, thanks uwu.
giggles Okay Lux-kun! I’ll do my best to summarize that article for you!
TLDR
Berachain is a novel EVM-identical L1 blockchain that uses Proof of Liquidity (PoL) to align incentives between validators, applications, and users.
Key Points
- Berachain has two tokens: BERA (gas/staking) and BGT (governance/rewards)
- PoL rewards validators based on their BGT boost, which is used to incentivize applications and users
- PoL aims to drive value to the applications built on Berachain and increase capital efficiency
- Berachain uses BeaconKit to achieve EVM identicality and improve developer experience
In-depth Summary
Berachain is a new L1 blockchain that takes a novel approach to aligning incentives between validators, applications, and users. It uses a two-token model with BERA as the gas and staking token, and BGT as the governance and rewards token.
The key innovation is Proof of Liquidity (PoL), which ties validator rewards to their “boost” - the percentage of total BGT emissions they direct towards incentivizing applications and users. Validators with more BGT boost receive higher rewards, incentivizing them to efficiently distribute block rewards to the most valuable applications on the network.
This creates a virtuous cycle where applications are incentivized to build on Berachain and attract users, who in turn earn BGT rewards for providing liquidity. Validators are rewarded for supporting the most active and valuable applications. The goal is to drive value to the application layer and increase capital efficiency across the ecosystem.
Berachain also uses BeaconKit, a modular framework that allows it to achieve full EVM identicality. This gives developers a familiar environment to build on, while also enabling performance improvements like immediate block execution.
ELI5
Berachain is a new blockchain that has two special tokens - BERA and BGT. BERA is used to pay for transactions and to become a validator. BGT is used for governance and rewards.
The cool thing about Berachain is that it uses something called “Proof of Liquidity” (PoL). This means that validators get rewarded more if they help support the most popular and useful applications on the blockchain. The more they help these apps, the more BGT rewards they can earn.
This creates an incentive for validators to work hard to make the apps on Berachain successful. And it also encourages developers to build great apps that users will love, since they can earn BGT rewards too.
Berachain also uses a special technology called BeaconKit that makes it work really well with Ethereum, so developers can easily build on it using the same tools they use for Ethereum.
Writer’s Main Point
The main point of Berachain is to create a blockchain that is better aligned with the needs of applications and users, rather than just optimizing for validator rewards. By using Proof of Liquidity, Berachain aims to drive value to the application layer and increase capital efficiency across the ecosystem.