PoL v2: Exploring the Value Loop of Berachain

The latest PoL (Proof of Liquidity) v2 mechanism launched by Berachain aims to address the long-standing "mainnet asset dilemma" of traditional public chains through innovative chain-level incentive redistribution. The core of this mechanism is to shift 33% of DApp incentives from BGT stakers to BERA stakers, marking a significant change in the value model of mainnet assets.

From Liquidity Incentives to Value Circles

Although PoL v1.0 successfully promoted the growth of ecological TVL, the incentive dividends mainly flowed to BGT and its derivatives. Version v2 established a "dual-channel allocation" model, allowing BERA holders to obtain protocol-level earnings without participating in complex DeFi strategies for the first time, achieving an upgrade from "Gas token → Yield asset."

The Subtlety of Mechanism Design

1. Non-inflationary yield: v2 has not introduced new token emissions but has restructured existing incentive flows to create chain-level cash flow for BERA.

2. BGT Ecological Niche Protection: 67% of the incentives are reserved for BGT stakers, maintaining the incentive leverage effect for the project team, while avoiding liquidity runs by governance token holders.

3. Triple Positive Feedback Loop:

   • More BERA staking enhances chain security
   • Higher staking rates reduce circulating chips
   • Less circulating volume amplifies BERA earnings

Potential Impact of Market Structure

1. For retail investors: Low-threshold profit capture Ordinary users only need to stake BERA to obtain two types of income: direct (incentive distribution) and indirect (DEX protocol revenue sharing).

2. For Developers: New Ways to Play with Main Coin Economics The project team can utilize the revenue attributes of BERA to design new mechanisms, such as automatic conversion of protocol income into BERA buybacks, BERA-based veToken models, etc.

3. For investors: Reconstruction of valuation models After BERA gains the ability to generate chain-level returns, its valuation logic may transition to "discounted cash flow."

Risks and Challenges

1. Short-term gambling risk: Some BGT stakers may turn to other ecosystems due to incentive dilution.
2. Complexity of the mechanism: Ordinary users still need to understand the interaction between PoL, BGT, and BERA.
3. Regulatory gray area: The compliance of incentive mechanisms has yet to be tested.

Industry Insights: L1 Competition Enters Deep Water of Value Distribution

The exploration of Berachain reveals a trend in the competition among public chains shifting from performance to value distribution efficiency. PoL v2 demonstrates a native solution that directly injects ecological value into the main currency through protocol layer design. If this model can be continuously validated, it may provoke imitation from other L1s, as "how chains create real demand for themselves" has become a key proposition determining the life and death of projects in the current environment.