Berachain has announced that its Proof of Liquidity (PoL) mechanism will soon transition from a limited rollout to a broader phase aimed at enhancing user engagement and validator participation. The upgrade, set to take effect on Monday, March 24, introduces improved incentive distribution across users, applications, and validators.
Everything changes Monday. On March 24th, PoL goes live, and governance proceeds to Phase 1.
Incentives start flowing. New vaults start getting emissions.
Here’s what changes and what’s next. pic.twitter.com/wkw10CkWWf
— Berachain Foundation ????⛓ (@berachain) March 20, 2025
The PoL system was initially launched to decentralize the supply of Berachain’s native token, BGT, and establish on-chain governance. With the upgrade, newly whitelisted reward vaults will expand the system’s reach beyond decentralized exchange (DEX) pools, allowing participants to earn BGT through various activities, including liquidity provision, perpetual trading, gaming, and bootstrapping real-world assets (RWAs) and decentralized physical infrastructure networks (DePINs).
Berachain’s team noted that various decentralized applications (dApps) on its chain will now be able to participate in the PoL system. They stated that the first batch of Requests for Reward Vaults (RFRVs) submitted by different applications has been approved, and a complete list of newly whitelisted vaults and their corresponding protocols will soon be released. The project team also confirmed that additional vaults and use cases will be introduced next week to expand the PoL ecosystem further.
Starting March 24, the newly whitelisted reward vaults will begin distributing incentives to validators and users, marking the full activation of Proof of Liquidity. Meanwhile, dApps will compete for emissions, fueling user growth, liquidity, and revenue generation.
For BGT holders, the upgrade provides greater control over emission flows, enabling them to boost validators and earn protocol incentives. Each validator’s reward vault allocations and earnings will be accessible through the official platform.
This upgrade comes as Berachain’s pseudonymous co-founder, “Smokey the Bera,” recently admitted the team sold too many tokens to venture capitalists before the official token launch. Smokey revealed that, in response to community concerns, Berachain is actively working on buying back BERA tokens from venture capitalists to reduce dilution and ensure fairer token distribution within the Berachain community.
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