Berachain launched the "Liquidity Proof" system, initiating the first phase of on-chain governance.

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According to a report by The Block on March 24, the EVM-based Layer 1 Blockchain Berachain will launch its Proof-of-Liquidity (PoL) system today, marking the official start of its on-chain governance phase one. The PoL system is designed to decentralize the supply of Berachain's governance token BGT to facilitate on-chain governance. The first implementation will take place in specific DeFi liquidity pools, and Berachain developers have stated that they plan to add new rewards vaults beyond the initial DEX pools.

Berachain's PoL method encourages users to provide liquidity for the network while allowing these assets to remain available. Unlike traditional Proof of Stake (PoS) blockchains that lock tokens, Berachain encourages users to stake assets in DeFi liquidity pools to earn governance tokens BGT. Validators then rely on the BGT delegated to them to enhance their influence in consensus, meaning that network security (through validators) is closely tied to the liquidity of the ecosystem.

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