Berachain: Proof of Liquidity Protocol and Architecture
Berachain seeks to solve blockchain scalability and adoption issues through its Proof of Liquidity (PoL) consensus mechanism. This L1 blockchain utilizes a dual-token model with BERA for gas and staking, and BGT for governance and rewards. PoL aims to align incentives between users, validators, and applications by prioritizing rewards for activities that contribute to the network's growth, not just validator staking. Validators earn through efficient exchange of block rewards for application incentives, driven by their BGT boost, and are incentivized to reward BGT boosters. Berachain uses BeaconKit, aiming to create a familiar, modular, and efficient environment for developers.