What Is BERA Token? Driving the Berachain Ecosystem Forward

Berachain is an EVM-compatible Layer 1 built on the Cosmos stack, designed to align network security with on-chain liquidity through a novel Proof of Liquidity (PoL) mechanism. At the center of this design sits the BERA token, which powers gas, staking, and fee payments across the network. This article unpacks how BERA fits into Berachain’s tri-token economy, why PoL matters, and how users and builders can prepare for the ecosystem’s growth.

Berachain at a glance

Berachain is engineered to offer the developer experience of Ethereum with the performance and modularity of Cosmos. It achieves this by combining the Cosmos SDK for consensus and networking with an EVM execution layer called Polaris, allowing smart contracts and tooling to work as they do on Ethereum while benefiting from Cosmos-style scalability.

• Learn more in the official docs: Berachain Documentation
• Technical foundations: Cosmos SDK and Polaris EVM
• Project overview: Berachain Website

The role of BERA

BERA is the native asset of the chain and is used to:

• Pay gas for transactions and smart contract execution
• Participate in staking and validator operations
• Settle fees in the ecosystem and serve as a base asset for liquidity pairs

BERA’s economic design is intentionally tied to liquidity and network security. Rather than purely rewarding block production with inflation or fee rebates, Berachain’s PoL mechanism incentivizes capital formation in on-chain markets so that the chain’s health (and the user experience) improves as liquidity deepens. For a conceptual overview of this approach, see the project’s explainer resources in the Berachain Documentation.

The tri-token model: BERA, BGT, and HONEY

Berachain introduces a tri-token economy to align incentives across users, validators, and protocols:

• BERA: The native gas and staking token.
• BGT: A non-transferable governance and reward token earned by participating in liquidity. BGT centralizes influence around actual contributors rather than passive speculators.
• HONEY: A utility stable unit of account intended for payments and DeFi composability within the network’s applications.

The combination allows PoL to channel rewards toward liquidity providers and active market participants, which in turn improves execution quality for users. For background on the system’s design and its departure from traditional Proof of Stake, see analyses such as Binance Research’s overview of Berachain and PoL and technical concepts in the Berachain Documentation.

Why Proof of Liquidity matters

In classical Proof of Stake, validators are selected based on stake weight, and the relationship between network security and on-chain markets is indirect. PoL ties validator influence to liquidity contributions through governance and reward flows, encouraging:

• Deeper liquidity for core pairs and assets
• Reduced slippage and better execution for users
• More predictable fee markets and improved capital efficiency

By rewarding the behaviors that make DeFi usable, PoL aims to make blockspace more valuable as liquidity increases—rather than relying solely on emissions to attract short-term participation. For context on EVM execution and tooling compatibility, see Ethereum’s EVM reference, which applies to Berachain’s smart contract experience via Polaris.

Ecosystem and developer experience

Berachain is positioned to host:

• Native AMMs and liquidity hubs
• Lending, liquid staking, and derivatives
• NFT and gaming applications leveraging the EVM toolchain

Developers benefit from familiar Solidity workflows, MetaMask-style wallets, and RPC configurations—while the Cosmos stack provides fast finality and interoperability pathways. Builders can explore tooling via Polaris EVM on GitHub and network guides in the official docs.

Latest developments and what to watch

Berachain has moved through extensive testnet iterations and ecosystem building, with ongoing updates from the core team and community. The project’s funding and roadmap have attracted significant attention from industry media; see background reporting such as CoinDesk’s coverage of Berachain’s raise and L1 vision and product updates on the Berachain Website.

If you’re exploring network connectivity during the testnet phase, Chainlist maintains common RPC and chain ID references—for example, the Artio test environment is cataloged here: Chainlist: Berachain Artio.

How users might use BERA

While specific distribution strategies can evolve with governance, the core uses for BERA typically include:

• Paying transaction fees across DeFi, NFT, and bridge interactions
• Providing liquidity to earn BGT and participate in the PoL-aligned reward system
• Delegating to validators when staking programs are available
• Serving as a base asset in DEX pairs

Always refer to official sources for current parameters and availability: Berachain Documentation and the project website.

Risks and considerations

• Market risk: As with any crypto asset, prices and demand fluctuate.
• Network risk: Protocol changes, governance decisions, and upgrades can alter token dynamics.
• Smart contract risk: DeFi protocol integrations carry execution and security risks.
• Custody risk: Self-custody requires careful key management and secure signing practices.

Secure custody for BERA and EVM assets

If you plan to interact with Berachain’s EVM applications, securing your keys is critical. Hardware wallets help protect private keys from online threats and malicious dApps by keeping signing isolated. OneKey offers:

• Multi-chain support with EVM compatibility and custom RPC configuration
• Open-source firmware and reproducible builds for transparency
• A user-friendly experience across desktop and mobile for staking and DeFi operations

When BERA is accessible on supported networks and wallets, using a hardware device adds an important layer of security for active on-chain users. For technical network details and wallet setup, consult the Berachain Documentation and reliable configuration resources like Chainlist.

Final thoughts

BERA is more than just a gas token—it’s a cornerstone of Berachain’s bid to align liquidity with security through PoL, supported by a tri-token design that rewards real economic participation. As the ecosystem matures, expect liquidity primitives, governance flows, and builder tools to drive a more capital-efficient user experience. Stay close to official updates via the Berachain Website and delve into the technical stack with Cosmos SDK docs and Polaris EVM. For anyone planning to participate directly in DeFi or staking, consider securing your keys with a hardware wallet like OneKey to reduce operational risk while engaging with the network.