What is Berachain? Berachain Mainnet to launch on 6 Feb 2025

What is Berachain?

The world of blockchain technology is constantly evolving, and one of the latest innovations making waves is Berachain. But what is Berachain, and why is it gaining so much attention? In this article, we’ll explore the fundamentals of Berachain, its unique features, and how you can get involved with BERA tokens and the upcoming Berachain TGE (Token Generation Event). Whether you're a crypto enthusiast or a newcomer, this guide will help you understand what makes Berachain a standout project in the blockchain space.

When will Berachain launch Mainnet and TGE?

Berachain, a new EVM-compatible layer-1 blockchain, is scheduled to launch its mainnet on 6 Feb 2025. This date marks a significant milestone for the project, coinciding with its Token Generation Event (TGE).

Background of Berachain

So, what is Berachain? Berachain is an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain built on the Cosmos SDK. This means it combines the flexibility and developer-friendly environment of Ethereum with the scalability and interoperability of the Cosmos ecosystem. Designed to support decentralized applications (dApps) and smart contracts, Berachain aims to provide a seamless experience for developers and users alike.

The project has garnered significant attention due to its innovative approach to blockchain architecture and its focus on creating a sustainable and efficient ecosystem. With the Berachain mainnet launch on the horizon, the crypto community is eagerly anticipating its potential to revolutionize the industry.

Who is behind Berachain?

Berachain’s bear-themed crypto project is run by a group of pseudonymous co-founders known as Homme Bera, Dev Bear, Papa Bear and Smokey the Bera. Under development since late 2021, Berachain is the co-founders' main foray into the industry after the NFT project “Bong Bears” and other associated collections.

Key Features of Berachain

To fully understand what is Berachain, let’s dive into its key features:

1. EVM Compatibility: Berachain’s compatibility with the Ethereum Virtual Machine allows developers to port their existing Ethereum-based dApps to Berachain with minimal effort. This opens up a world of possibilities for decentralized finance (DeFi), gaming, and more.

2. Built on Cosmos SDK: By leveraging the Cosmos SDK, Berachain benefits from the Inter-Blockchain Communication (IBC) protocol, enabling seamless interaction with other blockchains in the Cosmos network.

3. Scalability and Efficiency: As a Layer 1 blockchain, Berachain is designed to handle high transaction volumes while maintaining low fees and fast processing times.

4. Sustainability: Berachain incorporates innovative mechanisms to ensure long-term sustainability, making it an attractive option for eco-conscious users and developers.

What is the difference between Berachain and Ethereum (ETH)?

The main difference between Berachain and Ethereum lies in their consensus models: Berachain uses proof of liquidity, while Ethereum relies on proof of stake. Berachain is fully EVM-identical, meaning everything that runs on Ethereum can run on Berachain, too.

What is Beaconkit?

BeaconKit is the modular consensus layer powering Berachain, and it’s built using the Cosmos SDK. It provides flexibility for Ethereum-based blockchains, by giving developers the tools to create Layer-1 and Layer-2 solutions. Think of it as a tool kit that helps blockchains achieve scalability, composability, and finality, without having to reinvent the wheel.

BeaconKit helps Berachain remain EVM-compatible, where any Ethereum decentralized application (DApp) or smart contract can be deployed on Berachain without making any changes. This saves developers the time and effort of rewriting programming languages.

When Ethereum goes through massive upgrades like the Dencun upgrade, Berachain can quickly release the same upgrades too, thanks to BeaconKit’s modular design. Meanwhile, Cosmos SDK plays the role of creating blockchains with the ability to interoperate with others.

This allows BeaconKit to combine the strengths of Ethereum’s EVM with Cosmos’ enhanced composability and single-slot finality. Developers can plug in different modules — whether it’s a custom consensus layer, data availability solutions, or a rollup layer — making it adaptable from DApps to more complex blockchain structures.

For developers who want more control over their blockchain environment, BeaconKit lets them connect to different tools while benefiting from Ethereum’s security. Whether you’re building on Layer-1 or scaling up with Layer-2, BeaconKit makes deploying adaptable and secure solutions easier across the board.

What are Berachain DApps: BEX, Bend, and Berps

Berachain’s DApps are designed to maximize the benefits of PoL. Let’s look into Berachain’s three core DApps.

BEX: decentralized exchange

BEX is Berachain’s decentralized exchange (DEX), which allows community members to trade different types of crypto assets. BEX doesn’t require a centralized authority — it operates through smart contracts where trades are executed automatically.

Since it’s PoL-integrated, you can provide liquidity to the exchange, earning not only on trading fees but also on governance tokens like $BGT.

• What it does: Facilitates decentralized trading and liquidity.

• Key feature: Liquidity providers earn governance tokens, aligning with PoL.

• Why it matters: It helps maintain liquidity in the Berachain ecosystem, boosting network security and governance.

Bend: lending protocol

Similar to Aave or Compound, Bend is Berachain’s lending protocol. It allows users to deposit their tokens as collateral and borrow against them.

Lenders earn interest, and liquidity providers can earn additional rewards through $BGT. Here, the PoL consensus helps to incentivize liquidity.

• What it does: Allows you to lend and borrow crypto assets using PoL.

• Key feature: Liquidity providers are rewarded with governance tokens.

• Why it matters: Bend adds utility and liquidity to Berachain while supporting decentralized finance (DeFi) growth.

Berps: perpetual futures

Berps is Berachain’s DApp for perpetual futures trading. It allows you to bet on the price movements of digital assets without owning them. This is a popular type of derivatives trading.

As a trader, you can open positions, while liquidity providers earn trading fees. Just like with BEX and Bend, liquidity providers in Berps also earn $BGT thanks to PoL, tying their contributions to governance and security.

• What it does: Enables perpetual futures trading on Berachain.

• Key feature: Traders can take leveraged positions, while liquidity providers earn fees and rewards.

• Why it matters: Berps increases engagement and liquidity, making the network more robust and interconnected.

These DApps allow participants whether a trader, lender, or liquidity provider to contribute to the security and governance of Berachain. PoL rewards these participants for their contributions to the network.

How does $BGT manage governance?

$BGT is the Berachain’s governance token, which incentivizes participation for their community members. $BERA is a gas token, used for transactions and staking.

Let's look now at how $BGT governance works.

Proposals

• Any $BGT holder can propose changes to the Berachain network.

• These proposals could cover several topics, like improving the system, changing how PoL rewards work, or letting new assets be added to liquidity pools.

Voting

• Once a proposal is created, $BGT holders vote on whether to approve or reject it.

• The more $BGT you hold, the more weight your vote carries.

• Voting power can also be delegated to others, allowing community members to pool their influence.

Execution

• If a proposal reaches the minimum required number of votes and passes, it enters a waiting period (also called a “timelock”).

• After that, the changes can be executed, directly impacting the network’s functionality or reward systems.

Why separate $BGT and $BERA?

By separating $BGT from $BERA, Berachain ensures that governance decisions aren’t dominated by those who simply hold a lot of gas tokens. Since $BGT is distributed to liquidity providers and network participants, it provides the added bonus of having a say in how the network moves forward. They're participating in the ecosystem and being incentivized, too. This creates a long-term alignment between validators, developers, and participants.

Berachain has warned participants that the $BERA token and mainnet aren’t live, and $BERA is a testnet token at the time of writing. Any messaging stating otherwise is a scam.

Benefits of $BGT governance

• Decentralization: Governance is distributed across a diverse group of participants in Berachain.

• Alignment: Liquidity providers contribute the most to network growth and influence its future by earning $BGT.

• Flexibility: Governance proposals can focus on growth areas, from reward structures to protocol upgrades

What is $HONEY?

$HONEY is Berachain’s stablecoin. It can be used for trading, lending, and borrowing across the Berachain platform. Unlike volatile digital assets, stablecoins tend to be pegged against currency or gold. Here’s how $HONEY works, as claimed by Berachain.

Collateralized stability

$HONEY is soft-pegged to the U.S. dollar, and it’s backed by a mix of crypto assets like $BERA and $HONEY-wrapped tokens. This multi-collateral approach claims to strengthen its stability, providing more resilience compared to stablecoins backed by a single asset.

Lending and borrowing

On DApps like Bend, you can deposit your crypto assets as collateral and borrow $HONEY against them. For example, if you own $BERA tokens but want to unlock liquidity without selling them, you can deposit your $BERA as collateral and borrow $HONEY.

Trading

Traders can swap $HONEY on BEX for other assets without worrying about price volatility, as the token remains stable. Liquidity providers who deposit $HONEY in pools can also earn rewards in the form of trading fees and governance tokens like $BGT.

Why use $HONEY?

• Stability: Think of it as a digital version of a dollar that you can trade, lend, or borrow within the ecosystem, without the stress of wild price fluctuations.

• Versatility: $HONEY can be used across multiple DApps for lending, borrowing, and trading on Berachain.

By using $HONEY, participants can engage with Berachain’s lending and trading protocols while benefiting from reliability and stability.

BERA Tokens and Berachain TGE

A crucial aspect of understanding what is Bera chain is its native cryptocurrency, BERA tokens* These tokens play a vital role in the Berachain ecosystem, serving as the primary medium of exchange for transactions, staking, and governance.

The TGE is a significant milestone for Berachain, marking the official launch of BERA tokens. During this event, users will have the opportunity to acquire BERA tokens and participate in the growing ecosystem. If you’re wondering how to get involved, platforms like OKX Wallet will allow you to claim BERA tokens seamlessly.

How to Claim BERA on OKX Wallet

One of the easiest ways to participate in the Berachain ecosystem is by using the OKX Wallet. Here’s a step-by-step guide on how to claim BERA on OKX Wallet:

1. Download and Set Up OKX Wallet: If you don’t already have the OKX Wallet, download it from the official website or app store. Create an account and secure your wallet.

2. Connect to Berachai*: Once your wallet is set up, navigate to the Berachain section and connect your wallet to the network.

3. Participate in the TGE: Follow the instructions to participate in the Token Generation Event and claim your BERA tokens.

4. Start Exploring: With your BERA tokens in hand, you can start exploring the Berachain ecosystem, from staking to interacting with dApps.

The Future of Berachain

As the Berachain mainnet launch approaches, the project is poised to make a significant impact on the blockchain industry. Its unique combination of EVM compatibility, Cosmos SDK integration, and focus on sustainability sets it apart from other Layer 1 blockchains.

So, what is Berachain’s ultimate goal? It aims to create a decentralized, scalable, and user-friendly ecosystem that empowers developers and users alike. With the support of platforms like OKX and the growing interest from the crypto community, Berachain is well on its way to becoming a major player in the blockchain space.

What is Berachain and Why It Matters

In summary, what is Berachain? It’s a next-generation blockchain that combines the best of Ethereum and Cosmos to create a scalable, efficient, and sustainable ecosystem. With its upcoming Berachain mainnet launch, BERA tokens, and the ability to claim BERA on OKX Wallet, this project is set to redefine the future of decentralized technology.

Whether you’re a developer, investor, or crypto enthusiast, Berachain offers exciting opportunities to be part of a groundbreaking movement. Keep an eye on this innovative project as it continues to grow and shape the future of blockchain.