Can PoL v2 make BeraChain rise?

1. Core breakthrough of PoL v2: From Liquidity incentives to value closed loop

The "mainnet asset dilemma" of traditional public chains has long existed - tokens such as ETH and SOL bear Gas and consensus functions, but it is difficult to directly capture the growth of ecological value. Berachain's PoL (Proof of Liquidity) mechanism attempts to solve this problem through chain-level incentive redistribution, and the key iteration of version v2 lies in: shifting 33% of DApp bribery incentives from BGT stakers to BERA stakers. This adjustment may seem subtle, but it actually represents a paradigm shift in the value model of mainnet assets.

Previously, while PoL v1.0 successfully leveraged the growth of ecosystem TVL (according to DefiLlama data, Berachain's mainnet saw TVL surpassing $1.2B in just 3 months), the incentive rewards primarily flowed to BGT and its derivatives. The v2 version establishes a "dual channel allocation" (67% BGT/33% BERA), allowing main coin holders to earn protocol layer yields without engaging in complex DeFi strategies, essentially completing the upgrade from "Gas token → yield asset."

The subtlety of mechanism design

Non-inflationary returns: v2 does not introduce new token emissions, but instead restructures existing incentive flows to enable BERA to gain chain-level cash flow. According to Furthermore data, approximately $50K-$120K in bribery incentives is currently injected directly into the BERA staking pool each week, creating sustained buying pressure.

BGT Ecological Niche Protection: Retain 67% of the bribery incentives for BGT stakers, which maintains the project's "1 dollar → 1.x dollars" incentive leverage effect, while avoiding liquidity runs by governance token holders.

Triple Positive Feedback Loop:

1. More BERA staking → higher chain security
2. Higher staking rate → fewer circulating tokens
3. Less liquidity → The amplification effect of bribery incentives on the yield of each BERA unit

3. Potential Impacts of Market Structure

1. For Retail Investors: Low Barrier to Entry for Profit Capture

Ordinary users can now stake BERA to earn two types of rewards:

• Direct Earnings: 33% Bribery Incentive Distribution (APY approximately 9-15%, according to community estimates)
• Indirect income: native DEX protocol revenue sharing

Compared to other L1s that require users to provide Liquidity or participate in governance, Berachain's "staking for rewards" model significantly lowers the participation threshold.

2. For Builders: New Gameplay of Main Currency Economy

The project party can use the income properties of BERA to design new mechanisms, for example:

• Automatically convert protocol income into BERA for repurchase
• Develop the BERA-based veToken model
• Create a derivative agreement secured by BERA

3. For Investors: Reconstruction of Valuation Models

The current market cap / TVL ratio of Berachain is 0.31, far lower than new public chains such as Sui (4.44) and Aptos (3.17). As BERA gains chain-level earning capabilities, its valuation logic may transition towards "discounted cash flow":

Market Cap = ( Annual Income from Chain × Price-Earnings Ratio ) + ( Gas Demand × Inverse of Circulation Speed )

Assuming an incentive of $100K for bribery per week, the annualized income of $5.2M corresponds to a 20 times PE, implying a valuation of $104M, not accounting for Gas consumption and future income growth.

4. Risks and Challenges

Short-term speculation risk: Some BGT stakers may shift to other ecosystems due to incentive dilution.

Complexity of the mechanism: Ordinary users still need to understand the interaction between PoL/BGT/BERA.

Regulatory gray area: The compliance of bribery incentives has yet to be tested.

5. Industry Insights: L1 Competition Enters the Deep Waters of Value Distribution

The exploration of Berachain reveals a trend: the competitive focus of the next generation of public chains is shifting from TPS/low Gas fees to value distribution efficiency. While Arbitrum distributes profits through DAO and Solana attempts to support prices with MEV buybacks, PoL v2 demonstrates a more native solution—directly injecting ecological value into the main coin through protocol layer design.

If this model can continue to be validated, it may inspire imitation by other L1s. After all, with the decline of liquidity mining incentives, "how chains create real demand for themselves" has become a key question determining the life and death of projects. The answer given by Berachain is: let the main token be the primary beneficiary of ecological prosperity.