Berachain Network Upgrade Eliminates Dual-Token System in Favor of WBERA Incentives
The blockchain network Berachain has initiated the first phase of its PoL Next transformation, eliminating the BGT token and transitioning the platform's incentive mechanism to WBERA.
A significant hard fork is on the horizon for Berachain that will transition the network away from its dual-token incentive structure toward a system based entirely on its primary BERA token.
Scheduled to take effect on Wednesday at 4 pm UTC, the network upgrade will terminate emissions of the Bera Governance Token (BGT) and transition the blockchain's reward mechanism to Wrapped BERA (WBERA), according to an announcement made by the Berachain Foundation on Tuesday via X.
After the network upgrade is implemented, the blockchain will issue predetermined quantities of WBERA rather than BGT for block rewards. This transition marks the end of Berachain's earlier dual-token architecture, which divided network responsibilities between the transferable BERA token and the non-transferable governance token BGT.
According to Berachain, annual percentage rates (APR) have the potential to increase threefold following the upgrade, although the foundation cautioned that returns might experience volatility throughout the initial several days.
Berachain Foundation strives for a "simpler" token economy
According to the Berachain Foundation, the network enhancement substitutes its BGT-focused reward mechanism with an alternative built around sWBERA, the staked form of WBERA, which the organization characterized as more straightforward and more sustainable.
Prior to the implementation of this upgrade, participants who wanted to achieve superior yields were required to work through various reward structures and liquid staking tokens connected to BGT.
The transformation will be executed across two distinct phases. WBERA emissions commenced on Tuesday, whereas Wednesday's hard fork will bring BGT emissions to a complete stop.
Reward vaults and liquid staking rewards connected to BGT will undergo a gradual phase-out during the days that follow the hard fork.
BERA falls 7% ahead of hard fork as network activity remains muted
The BERA token experienced a 7% decrease during the 24 hours leading up to 8:34 am UTC, pushing its total decline throughout the past year to 88%, based on data from CoinMarketCap.
Berachain's total value locked (TVL) declined by $1.79 million, representing a 3% decrease, during that same timeframe. The network currently holds the 37th position by TVL with $56 million in locked assets, based on data from DefiLlama. Throughout the previous 24 hours, Berachain produced $41 in chain fees and $3,359 in application revenue while issuing $14,816 in token incentives.