The Fat Bera Thesis: Berachain PoL Game Theory for Dummies

McBera kept complaining to intern that Beratown users don’t know how to use the chain, so they decided to team up to educate the dumb beras…

Do you reckon that every blockchain needs another worthless governance token? Think again. In the current DeFi landscape, there's a broken dynamic: the more you use a network, the less governance power you have. Gas fees slowly eat away at your holdings while whales buy up voting power without contributing any meaningful value.

Berachain flips this model on its head with a unique insight: what if governance power couldn't be bought, only earned? Enter Proof-of-Liquidity (PoL) and DapDap's Beratown – your single place for everything when it comes to participating in the Berachain ecosystem.

How Proof of Liquidity Actually Works (In Plain English)

Traditional blockchains force you to choose: stake your native tokens for network security or provide liquidity for yield. Berachain says why not both? Here's how:

Two-Token Separation:

  1. $BERA for gas and transactions

  2. $BGT for governance and rewards (non-transferable, must be earned)

Reward Vaults:

  1. Provide liquidity to approved vaults

  2. Earn BGT based on your contribution

  3. Delegate BGT to validators you trust

Validator Alignment:

  1. Validators compete for your BGT delegation

  2. More delegation = more rewards to distribute

  3. Creates a positive feedback loop of value

Getting BGT on Berachain

We've made participating in PoL dead simple via beratown.dapdap.net:

Choose Your Vault:

  1. Head to the BGT section

  2. Sort by APY, TVL, or BGT capture rate

  3. Start with established pools like HONEY-WETH (currently $51.66M TVL, 4.27% APY on bArtio testnet)

Stake Your Position:

  1. Deposit liquidity

  2. Receive and stake LP tokens

  3. Track BGT and iBGT rewards in real-time (top right of the interface)

Maximize Your Time on Berachain:

  1. Monitor validator performance & Participate in governance

  2. Adjust strategies based on real-time and holistic data available via the Beratown dashboard

Pro Tips from McBera’s POV

Working directly with Berachain's ecosystem, we've identified key strategies for success:

  • Watch the Leaders: The top 3 validators (Infrared, Kodiak Finance, The-Honey-Jar) consistently show higher BGT distributions. Track their performance right in Beratown.
  • Find Hidden Gems: Look for pools with low TVL but high BGT capture rates. Example: on bArtio testnet HONEY-BLAU-LP shows only 1.65% BGT capture despite significant incentives.

  • Time Your Entry: New vault whitelisting often brings peak BGT distributions. Watch governance proposals through our interface.

Real User Strategies

Here's what successful BGT earners are doing in Beratown:

  • Yield Diversification: Spread positions across multiple vaults to capture different reward streams

  • Active Delegation: Participate in vault whitelisting discussions and view how validators are delegating BGT

  • Reward Stacking: Use liquid staking solutions like Infrared's iBGT for additional yield

The Future of DeFi Governance

The traditional ‘fat protocol, thin app’ thesis is getting a bear-sized update. By making governance power something that must be earned through participation, Berachain creates an ecosystem where engaged users – not just wealthy ones – shape the future.

Beratown makes Berachain accessible by:

  • Providing abstracted in-app swaps , lending, and staking across top protocols

  • Simplifying vault staking and reward tracking

  • Creating intuitive interfaces for delegation, offering unique insights into validator performance and incentive distribution

This is a fundamental redesign of how blockchain incentives work. While normal users can simply transact with $BERA, those who want to help shape the ecosystem's future can earn their voice through meaningful contribution.

Ready to earn your place on Berachain? Head to beratown.dapdap.net and start staking in your first vault.

Useful Sauces

And the most important sauce,

  • Myself. ‘‘I made it up’’, McBera. Q5 2024.

About Berachain

Berachain is the new EVM-compatible L1 blockchain transforming how you interact with DeFi. Built on the Cosmos SDK, Berachain introduces a unique Proof-of-Liquidity (PoL) consensus mechanism, enhancing both network security and ecosystem liquidity simultaneously. To this end, Berachain fosters a symbiotic relationship between validators, liquidity providers, and users, creating a robust and dynamic ecosystem.

Dap up Berachain | Follow on X | Join the Discord | Read the Docs

About DapDap

As the onchain landscape continues to evolve, the demand for highly usable and accessible applications has never been greater. Enter DapDap d’Avinci — the next-gen DeFi consumer app that transforms how you navigate the Ethereum L2s and EVMs. Designed to unify and simplify, d'Avinci gives instant access to 300+ dApps across 17+ networks, all within a single, intuitive interface.

Beyond d'Avinci, DapDap’s own consumer layer enables the creation of custom apps (e.g., Beratown), offering a more flexible, tailored, and customisable onchain experience for users.

Launch d'Avinci | Follow DapDap on X | Read DapDap's Blog | DapDap Docs

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