Berachain is a DeFi-centric, Layer 1 blockchain built on the Cosmos SDK, leveraging an innovative Proof of Liquidity Consensus. Designed for EVM compatibility, Berachain enables users to stake tokens and provide liquidity to DeFi protocols simultaneously.
The project features a tri-token system consisting of BERA (the native gas token), HONEY (a native stablecoin), and BGT (the non-transferrable Bera Governance Token). In this article, readers will explore what Berachain is, learn about its founders and funding history, discover its key features, and get insights into its future developments.
Project Background
Berachain announced the successful completion of its $42 million Series A funding round, which valued the initiative at $420.69 million. The fundraising was led by Polychain Capital and included contributions from Hack VC, dao5, Tribe Capital, Shima Capital, CitizenX, Robot Ventures, and several undisclosed centralized crypto exchanges.
By April 2024, Berachain announced an increase in its Series B funding to $100 million, marking a 45% rise from earlier reports. This round was co-led by Brevan Howard Digital's Abu Dhabi branch and Framework Ventures, with additional participation from Polychain Capital, Hack VC, and Tribe Capital.
Investors backed Berachain through a Simple Agreement for Future Tokens (SAFT). In March 2024, Berachain secured $69 million, elevating its post-investment valuation to $1.5 billion. The funds are designated for international expansion and continued development.
Check the updates on the funding history here: Berachain
What Problem Does Berachain Want To Solve?
The Purpose and Functionality of Berachain
Berachain aims to tackle several limitations inherent in existing blockchain networks like Ethereum and Solana. By leveraging the PoL consensus mechanism, Berachain enhances security and liquidity compared to traditional Proof-of-Stake (PoS) systems. This approach aligns network incentives, fostering a robust synergy between validators and the ecosystem.
Key Features
EVM Compatibility: Berachain's EVM compatibility allows seamless porting of assets from Ethereum and other EVM blockchains, facilitating interoperability and broadening its appeal.
Tri-Token Model: The network employs a unique tri-token system comprising:
- BERA: The primary token for gas fees and transactions.
- BGT: The governance token, earned through staking and participation in network security.
- HONEY: A stablecoin pegged to the US dollar, used in various transactional capacities within the ecosystem.
Current Projects and Future Development Plans
Berachain's roadmap has ambitious plans to expand its ecosystem and refine its technology. Future developments will likely focus on enhancing liquidity pools, integrating more dApps, and improving user experience.
Witnessing the transformation of Berachain from a humble NFT collection into a fully-fledged blockchain and DeFi ecosystem has been nothing short of remarkable. Since its inception, Berachain has achieved several key milestones:
- April 2021: Bong Bears is launched as an NFT collection.
- 2021 to Early 2022: Several additional NFT collections are released, including Baby Bears, Bit Bears, Bond Bears, Boo Bears, and Band Bears.
- April 2022: Berachain announces its plan to create a Layer 1 blockchain protocol, featuring innovations like Polaris EVM and Proof of Liquidity.
- January 2024: The Artio testnet is launched, accompanied by five in-house DeFi testnet dApps, including Berachain Exchange (BEX), Berachain Lend (BEND), BERPS, Honey, and BGT Station.
- June 2024: Berachain's Public Testnet bArtio B2 went live
Berachain has continued expanding its suite of DeFi services, refining the blockchain to support a diverse range of interoperable cross-chain financial products and services within its ecosystem and beyond.
Beyond the core Berachain protocol, the network’s Polaris EVM provides an interoperable development layer that caters to projects across the Ethereum, Cosmos, and Celestia ecosystems. As Berachain continues to evolve, the anticipation builds for the major developments and announcements that lie ahead.
Why Should Investors Care?
Berachain’s novel Proof-of-Liquidity consensus and tri-token model address critical issues traditional blockchain networks face, offering a more efficient and scalable solution. Its EVM compatibility ensures broad usability, while it's substantial funding and active community signal strong potential for future success. With a current valuation of $1.5 billion and growing interest from the crypto community, Berachain stands poised to make significant impacts in the DeFi and broader blockchain space.
Conclusion
Berachain represents a pioneering approach in the blockchain industry, combining innovative technology with practical solutions to longstanding issues. Its Proof-of-Liquidity consensus and tri-token model set it apart, providing enhanced security, liquidity, and scalability.
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This article does not constitute investment advice.
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