Who is Berachain (BERA), a cryptocurrency that soared more than 700% today and ‘created’ a validation mechanism with three different tokens
A cryptocurrency caught the attention of investors this Thursday (6) when it registered a jump that reached more than 700% in the last 24 hours. This currency is Berachain (BERA), which carried out its airdrop (i.e., distribution of tokens) today, marking its official launch.
According to Coin Market Cap, the market value of the project reached US$ 837.7 million — a jump of 679.52% in relation to the last 24 hours.
But after all, what is Berachain and what does it do?
Berachain is a layer 1 (or L1) blockchain network that uses an innovative mechanism called “proof-of-liquidity” (PoL), which seeks to combine greater network security with the provision of liquidity for the protocol.
Going back a few steps, decentralized finance (DeFi) protocols use other projects to ensure that network resources can be traded in a variety of ways — such as loans, for example — without the price of the main token fluctuating too much.
Thus, Berachain uses a tri-token model in its economic and governance structure, namely:
BERA: is the network’s main cryptocurrency and acts as the payment token in transactions, also used for staking;
BGT: is the non-transferable governance token, used to vote on proposals for changes to the network, in addition to allowing BGT holders to receive distributions of fees from decentralized applications (dApps);
HONEY: is the native and collateralized stablecoin with asset deposits listed on authorized platforms on the network. The currency is minted through HoneySwap, a decentralized exchange (DEX).
