🔥 Gate.io Launchpool $1 Million Airdrop: Stake #ETH# to Earn Rewards Hourly
【 #1# Mainnet - #OM# 】
🎁 Total Reward: 92,330 #OM#
⏰ Subscription: 02:00 AM, February 25th — March 18th (UTC)
🏆 Stake Now: https://www.gate.io/launchpool/OM?pid=221
More: https://www.gate.io/announcements/article/43515
Hack VC: Why did we lead Berachain's Series A funding round?
Words: Peter Hans and Rodney Yesep
Compiler: Deep Tide TechFlow
At Hack VC, we focus on investing in early-stage Web3 infrastructure, AI, and decentralized finance projects, supporting founders who push the boundaries of what's possible. Berachain is an outstanding exponent in the Web3 infrastructure space and the perfect choice in our portfolio. Berachain is one of the most innovative products in the Web3 space today.
By addressing some of the biggest pain points in the blockchain ecosystem, Berachain's architecture and unique mechanisms provide a viable path for scalability, capital efficiency, cross-chain liquidity, and long-term value creation.
The logic of our investment in Berachain stems from how its protocol solves alignment challenges in the existing ecosystem. Below we elaborate on a number of elements that are defined at the time of initial investment based on market issues and the solutions we believe Berachain will be able to provide.
Ethereum's scalability limits innovation
Issue:
Ethereum's EVM (Ethereum Virtual Machine) remains the gold standard for smart contracts. However, its monolithic architecture limits throughput to 15-30 transactions per second (TPS) with a final confirmation time of around 13 minutes. As a result, developers are forced to choose between EVM compatibility and performance. Other chains competing with Ethereum have essentially sacrificed EVM support in pursuit of speed, resulting in liquidity and tool fragmentation. Even Ethereum's Layer 2 solutions inherit slow final confirmation times and rely on centralized sequencers, resulting in high fees, slow transactions, and isolated liquidity.
Berachain's Solution:
Pledged capital is trapped in an unproductive role
Here's the problem:
In proof-of-stake (PoS) chains such as Ethereum and Avalanche, more than $114 billion in assets are locked in validators for a modest yield (typically 3-5% APY) and cannot be used for DeFi. Liquid staking tokens, such as Lido's stETH, attempt to solve this problem but introduce counterparty risk and governance centralization. In addition, validators are incentivized to prioritize staking rewards over ecosystem growth, leading to a misalignment between network security and user utility.
Berachain's Solution:
Liquidity is fragmented across chains
Issue:
Cross-chain interoperability remains one of Web3's weakest links. Cross-chain bridges are often unreliable, and billions of dollars have already been stolen as a result of cross-chain bridge activity. Cosmos' IBC protocol lacks native EVM support, isolating Ethereum's more than $45 billion DeFi ecosystem. This fragmentation forces developers to rebuild tools for each chain and incurs high slippage and fees for users.
Berachain's Solution:
Inflationary tokenomics erodes long-term value
Issue:
Most chains rely on the issuance of inflationary tokens to channel liquidity. In addition to the dilution effect, the distribution dynamics also incentivize short-term capital that may be exacerbated by internal selling pressures. Even a "deflationary" model like Ethereum's EIP-1559 can't offset staking issuance, while veToken systems like Curve over-centralize governance.
Berachain's solution – the three-coin model:
After a clear understanding of the key challenges facing Web3 and how Berachain's innovative approach solves them, the next step is to evaluate how this vision translates into tangible results. Berachain has shown impressive momentum, demonstrating that its ecosystem is not only viable, but also well-positioned for long-term impact. Below we briefly show this logic in practice.
Progress to date
Key Vaults
Bong Bear NFTs: The Bong Bears NFT collection has become a cultural phenomenon in the Berachain ecosystem. These NFTs are on-ramps to participate in the ecosystem, providing holders with access to exclusive governance proposals, airdrops, and community events.
Berachain's innovative approach to blockchain infrastructure solves key challenges in scalability, capital efficiency, liquidity fragmentation, and tokenomics. Its Proof-of-Liquidity consensus mechanism and three-coin model align the incentives of validators, developers, and users, fostering a cohesive and thriving ecosystem. Hack VC is excited to support this project and looks forward to playing an important role in the inevitable growth of Web3.
Disclaimer
The following content is for informational purposes only and does not constitute investment advice of any kind and should not be used in the evaluation of any investment decision. Such information should not be relied upon as accounting, legal, tax, business, investment or other related advice. You should consult your own advisors, including your attorneys, for accounting, legal, tax, business, investment, or other relevant advice, including advice related to the content discussed herein.
This article represents only the current views of the authors and does not necessarily reflect the views of Hack VC or its affiliates (including any funds managed by Hack VC) and does not necessarily reflect the views of Hack VC, its affiliates (including its general partner affiliates), or any other individual associated with Hack VC. Some of the information in this article is derived from published material and/or compiled by third parties and, in some cases, is not updated as of the current date. Although these sources are believed to be reliable, neither Hack VC, its affiliates (including its GP affiliates), nor any other person associated with Hack VC makes any claims as to their accuracy or completeness, nor should they be relied upon as the basis for accounting, legal, tax, business, investment, or other decisions. The information in this article is not claimed to be complete and is subject to change at any time, and Hack VC is under no obligation to update such information or provide notice if the information is inaccurate.
Past performance is not necessarily indicative of future results. Any forward-looking statements contained herein are based on certain assumptions and analyses by the authors, in combination with their own experience, perception of historical trends, current conditions and expected future developments, and other factors that they believe are appropriate in the particular circumstances. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.