[Brief introduction] Bera's three-token model is introduced at the beginning to facilitate the understanding of Bera's mechanism below. Specific tutorial Twitter: @hualunjiejie
The three tokens consist of GasCoin BERA, governance token BGT and stablecoin HONEY.
It is easy to understand that ordinary users use BERA for GasFee and use stablecoin HONEY to avoid risks. The difficulty lies in BGT, which is used to pledge to the validator node for liquidity proof (PoL). Users who do not want to hold BGT can burn it and exchange it for BERA for GasFee.
Bera used the term proof of liquidity. How do you understand it?
Just think of one question: Who are the miners?
In PoW, the people who provide computing power are miners, and the packaging nodes receive GasFee.
There are two types of miners in PoS, one is to run the computing power node, and the other is the cloud miner who pledges ETH to the node. To become a node, you must pledge 32 ETH, so people with computing power will bribe people with ETH to make up the deposit and then share the gas revenue.
What about PoL?
In PoL, in addition to providing computing power, nodes also have the right to set the BGT reward distribution and invest it in the supported AMM pool. In order to attract others to support their own distribution proposals, nodes can bribe votes with Bera or other tokens.
Three types of miners are generated:
1. Provide computing power and distribute rewards as a node miner
2. Liquidity providers receive BGT rewards from the allocation
3. Pledge BGT to nodes and get bribes from them
What problem was solved?
1. The high staking rate of ETH means that there is less ETH in circulation, pricing is insufficient, and scarcity is artificially increased. If it is not ETH's own strong ecosystem, but a small chain, if the price of the currency falls, miners will remove the stake to avoid risks and cause a market crash, and the volatility of the asset will be high. On Bera, BERA will not be used for staking, so it is fully circulated and has a clear and calculable inflation/deflation rate.
2. The capital efficiency of ETH pledge is low. The locked ETH has no other use and becomes a kind of interest-bearing brick. So many projects are considering restaking recently for this reason. I will not go into details. On Bera, there is a new type of "market maker miner". The miner is the one who provides liquidity for recognized token pairs and participates in the chain mechanism.
3. Traditional DEX lacks token consumption scenarios and is in a state of high inflation all year round. Subsidies to liquidity providers are shrinking. Bera uses the GasFee of the entire chain to consume the distributed incentives. For liquidity providers, subsidies are real money.
4. More decentralized - This is more difficult to understand. Let me explain how Bera's advanced gameplay improves the level of decentralization. First of all, most of the people on Ethereum are cloud miners who pledge ETH. After all, it is inconvenient for everyone to provide a cloud server, but it is not difficult to save some money. Therefore, some mining pools absorb the pledges of retail investors or open many nodes with sufficient capital, but there are not many mining pools that retail investors can trust, which exacerbates the trend of centralization.
Suppose you are a project owner on the chain, you have your own token A, and a HONEY-A pool. In order to deepen your own liquidity pool, general project owners will give airdrop incentives to this pool, such as SUSHI rewards SUSHI-USDC liquidity pool.
In Bera, you have an advanced method. You can build your own node and invest the weight in your own liquidity pool, so that you can use the official BGT to reward your own token pool.
Project owners can also use their own tokens to bribe nodes and attract people with BGT to pledge and support their own nodes.
In order to obtain more rewards from the pool, project users will also actively pledge BGT to support project nodes.
For project owners, having their own nodes will help the community gain voting rights and more incentives on Bera. For users, if the projects they support have nodes, they can give back real benefits to the community.
This is equivalent to encouraging each project party to deploy its own nodes, attract its own users and form a community of interests in Bera governance. The more projects there are, the more nodes there will be. The goal of decentralization will be achieved.
What is Bera's ambition? Looking back at the crypto world: The approval of BTC ETF has the benefit of assets flowing into Web3, but the downside is that compliant assets face more supervision. We have seen too many CeFis that manipulate, unplug, and misappropriate assets. They have been compromising with politics: clearing out users, imposing high fines, handing over the list of major asset holders, and confiscating assets in the name of anti-money laundering, which is contrary to Satoshi Nakamoto's original intention of creating anarchic currency.
Bera has launched its own DEX+ and uses real money to support LPs with GasFee. It is undoubtedly creating a decentralized trading blockchain. The rules are transparent and decentralized, as safe as Ethereum. It will never go bankrupt or misappropriate funds. It has a rich variety of transactions and leverage tools. Berachain is a chain exchange. Do you still want to keep your money in centralized exchanges?
Anonymous, censorship-resistant, decentralized, secure, CryptoBeras will never be compromised! 🐻⛓️ 🔥 $BERA #Berachain