Berachain is one of the most discussed Layer 1 blockchains of 2025. Built on a novel Proof-of-Liquidity (PoL) consensus mechanism, it is fully compatible with the Ethereum Virtual Machine (EVM) while introducing a fundamentally different economic model. Instead of locking capital idle in validators, Berachain requires validators to actively direct liquidity into the ecosystem — making security and DeFi growth two sides of the same coin. This guide explains what Berachain is, how it works, and how to get started.
Berachain is an EVM-identical Layer 1 blockchain, meaning every Ethereum smart contract, developer tool, and wallet works on Berachain without any modifications. It was founded by a pseudonymous team known as the Beras and is built on the BeaconKit framework — a modular consensus client that interfaces with any EVM-compatible execution environment.
What separates Berachain from other EVM chains is its three-token economic model:
BERA: The native gas and staking token. All transaction fees on Berachain are paid in BERA. Validators stake BERA to participate in block production.
BGT (Berachain Governance Token): A non-transferable token earned exclusively by providing liquidity to whitelisted Reward Vaults. BGT is used to vote on governance proposals and direct block reward emissions. BGT can be burned at a 1:1 ratio to receive BERA.
HONEY: Berachain's native overcollateralised stablecoin, soft-pegged to the US dollar. HONEY is the primary stablecoin used across all native Berachain DeFi protocols.
Traditional Proof-of-Stake chains reward validators with newly minted tokens for locking capital. This capital sits idle, doing nothing for the broader ecosystem. Berachain changes this entirely with Proof-of-Liquidity.
In the PoL model, validators earn BGT tokens as block rewards. These BGT tokens must then be directed to Reward Vaults — whitelisted liquidity pools within the Berachain DeFi ecosystem. Users who provide liquidity to those vaults earn BGT in proportion to the emissions directed to their pool. This creates a self-reinforcing cycle: validators bring security, and simultaneously, that security directly bootstraps DeFi liquidity.
DeFi applications on Berachain compete for validator attention by offering incentives in exchange for BGT emissions, creating a marketplace for liquidity that benefits the entire network.
EVM-Identical Execution: Berachain is not just EVM-compatible — it is EVM-identical. This means every opcode, every precompile, and every toolchain (Hardhat, Foundry, Remix, MetaMask) works exactly as on Ethereum.
Proof-of-Liquidity Consensus: The first blockchain to require validators to actively direct liquidity as part of consensus, aligning network security with DeFi ecosystem growth.
Three-Token Model: BERA, BGT, and HONEY each play distinct roles, creating a layered economic system that prevents the common problem of governance tokens being purely speculative.
Native DeFi Primitives: Berachain launched with BEX (native AMM DEX), Berps (native perpetual futures exchange), and Bend (native lending market) — all integrated directly with the PoL reward system.
BGT Marketplace: Because validators can sell their BGT emission-directing rights to protocols, a secondary market for liquidity incentives emerges, creating additional revenue streams for validators and deeper liquidity for DeFi protocols.
Install a Compatible Wallet: Download MetaMask or any EVM-compatible wallet. Because Berachain is EVM-identical, your existing Ethereum wallet address works directly on Berachain without any reconfiguration.
Add the Berachain Network: In MetaMask, go to Settings, then Networks, then Add Network. Enter the Berachain RPC URL, Chain ID, and currency symbol (BERA). You can find the exact network details at the official Berachain documentation (docs.berachain.com).
Bridge Assets to Berachain: Visit the official Berachain bridge at bridge.berachain.com. Connect your Ethereum wallet, select an asset to bridge (ETH, USDC, or other supported tokens), and confirm the transaction. Assets typically arrive within a few minutes.
Get BERA for Gas: You need a small amount of BERA to pay for transactions. Use the Berachain faucet for testnet BERA, or purchase BERA on a centralised exchange and withdraw it to your wallet address. Without BERA for gas, no transactions can be executed.
Provide Liquidity and Earn BGT: Navigate to BEX (bex.berachain.com) and add liquidity to a whitelisted pool. Your LP position begins earning BGT emissions immediately. BGT accumulates in your wallet over time.
Use BGT for Governance or Convert to BERA: Once you have accumulated BGT, you can vote on governance proposals at hub.berachain.com, delegate BGT to validators to direct emissions, or burn your BGT 1:1 to receive BERA.
Deep Native Liquidity: The PoL mechanism ensures that from day one, liquidity is actively directed into the ecosystem rather than sitting idle in staking contracts. This results in tighter spreads and better prices for DeFi users.
Developer Familiarity: EVM-identical execution means the entire existing Ethereum developer ecosystem can build on Berachain immediately. No new language, no new toolchain.
Sustainable Tokenomics: The three-token model creates genuine utility for each asset. BERA has gas demand, BGT has governance utility, and HONEY provides a stable medium of exchange — none of the three is purely speculative.
Aligned Incentives: Validators, liquidity providers, dApp developers, and BERA stakers all benefit when the Berachain ecosystem grows. This alignment is structurally embedded in the consensus mechanism, not just promised by a whitepaper.
Ecosystem Diversity: With dozens of native DeFi, NFT, and GameFi protocols already deployed, Berachain offers a rich environment for users from day one.
Berachain represents a significant evolution in how Layer 1 blockchains think about the relationship between security and liquidity. By making validators responsible for directing liquidity — not just locking capital — Berachain creates a self-sustaining DeFi flywheel that benefits every participant in the ecosystem. Its EVM-identical architecture ensures that developers can build without friction, while the three-token model provides a sustainable economic foundation. For anyone interested in exploring the next generation of blockchain infrastructure, Berachain is one of the most technically interesting and practically significant projects launched in recent years.