Berachain has unveiled a significant upgrade to its tokenomics framework, proposing a native yield module for its base token, BERA.
The move, part of the forthcoming Proof of Liquidity v2 (PoL v2) rollout, is designed to redirect 33% of block reward emissions from BGT boosters to BERA holders, establishing a protocol-level staking yield for the native asset.
Berachain shares new Proof of Liquidity proposal with 33% incentives going to BERA rewards Berachain mainnet has shared a proposal containing details about its Proof of Liquidity upgrade which would set aside 33% of PoL incentives… @CosmicMetaX #BERAhttps://t.co/14sxMUDfYI
— HarpCoin (@harp_coin) July 15, 2025
The proposal, published on July 14 via Berachain’s governance forum, outlines a seamless process for both centralized exchange (CEX) users and on-chain participants to stake BERA without needing third-party applications or token wrappers. To ensure consistency and support the BERA price, all non-BERA rewards generated through PoL would be automatically converted to BERA via buybacks. Additionally, a seven-day unbonding period is proposed to discourage opportunistic farming and encourage long-term alignment.
The Berachain team frames the initiative as an additive enhancement to its existing ecosystem, rather than a disruptive overhaul. BGT will continue to serve its critical function in validator boosting and dApp incentives, while developers and liquidity providers will experience no interruption, retaining the current BGT-denominated rewards.
This proposal arrives as Layer 1 blockchains face mounting scrutiny over the practical utility of their native tokens. Berachain’s model funneling rewards toward ecosystem applications rather than locking them in staking contracts has gained traction, but left BERA underutilized. With PoL v2, the chain aims to correct this imbalance, increasing demand for BERA while reinforcing its role in long-term value accrual.
Community feedback on the PoL v2 proposal will run through July 20, with a Guardian vote scheduled for July 21. If approved, implementation could go live immediately, potentially setting a new standard for aligning token design with investor expectations in an evolving crypto landscape.
Meanwhile, the chain is also broadening its ecosystem participation. In a recent blog post, Berachain confirmed that starting March 24, dApps can apply for PoL rewards through dedicated vaults, not just via liquidity pools on its native exchange, BEX. This extension strengthens governance participation and decentralizes reward distribution even further.
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