Summarising @SmokeyTheBera and teams' proposal
TLDR
- Strengthen $BERA by creating long-term value loops while keeping the POL system intact
- Upgrading the reward engine behind Berachain --> with smarter value capture, stronger liquidity, and better alignment between $BERA and $BGT
- - - - -
Problem
- PoL works great for rewarding users and allocating incentives.
- But most of the value accrues to $BGT, not $BERA
- $BERA doesn't have strong value accrual, limiting long-term sustainability
- - - - -
Solution
- Incentive Redistribution + Chain-Owned Liquidity (COL) = Long-term BERA value capture
- When dApps give out rewards through PoL, a small cut (starting at 20%) goes to the protocol
- Collected BERA is not sold but paired with HONEY or Majors to build permanent, productive liquidity (LPs on BEX)
- Over time, the protocol owns more LP positions and earns yield (fees) --> which can be reinvested into BERA liquidity or dApps
- - - - -
Muh flywheel
Apps incentivize usage --> Protocol takes a small cut --> That cut is used to grow COL --> COL earns fees --> Fees are recycled into new incentives or LPs --> boosts $BERA utility and demand --> repeat
- - - - -
Risks
- Short-term dip in $BGT yield
- But long-term boost in $BERA value + ecosystem health
- Over time, $BGT supply will dilute anyway, so it’s better to build real utility for $BERA
- Encourages apps to be smarter and careful with incentives
- - - - -
Conclusion
- Help $BERA capture protocol value
- Build sticky, protocol-owned liquidity
- Create a durable system that serves both apps and LPs
Putting $BERA in control --> not just as a gas token, but the economic engine of the chain

Excited to present some thoughts from myself, @capnjackbearow, and @0xcarnation around potential improvements to PoL, and value capture to $BERA.
We’ve heard the community’s commentary, and had the privilege of discussing different approaches with a number of sharp builders from inside and outside of the Bera ecosystem, along with liquid funds, power-users, and large LPs. Their input has been used to shape the following proposal, which in short, involves:
⁃ Utilizing a variable portion of incentives paid for BGT to build productive permanent liquidity in the form of BERA-HONEY/BERA-Major LP in the BEX, as well as stake BERA into validators supporting ecosystem projects
⁃ Directing BEX fees towards building liquidity for BERA majors through auto-incentives
⁃ Relaxation of guidelines for new reward vaults participating in PoL
We see this as something which will fundamentally capture value for BERA, expand the total set of protocols building around PoL (whether they use BERA or not), increase total incentives revenues, and maintain asymmetric yield profiles for BGT boosters and LSTs.
I’m looking forward to feedback from the community.
I’m similarly optimistic to watch Proof of Liquidity and Berachain evolve into the ultimate accelerator for the application layer, and to see the next category defining application built on Bera.
Berachain.
25.68K
152
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.