Berachain is a DeFi-focused and EVM-compatible L1 chain built on the Cosmos SDK, powered by Proof of Liquidity Consensus. Berachain’s current implementation is built on the Cosmos-SDK and utilizes its native consensus mechanism Tendermint. Tendermint is trusted, high performant and most important secure implementation of Byzantine Fault Tolerant (BFT) consensus.
Berachain implements a novel “Tri-Token System”, which means Berachain has three native tokens as follows:
- $BERA: the gas token of Berachain
- $BGT: the governance token of Berachain
- $HONEY: the native consensus collateralized stablecoin
Proof of Liquidity is Berachain’s novel sybil resistance mechanism that utilizes “consensus” vaults to calculate validator vote weights, distribute block rewards and incentivize the velocity of capital and depth of liquidity. Proof of Liquidity consensus creates an environment where BeraChain’s liquidity grows in lockstep with its utilization and the market cap, driving sustainable and healthy growth. Operating under Proof of Liquidity, every protocol that builds on BeraChain will have a vested interest in the future of the network, as their TVL goes towards increasing security and sybil resistance while generating $BERA fee token rewards.