[Berachain launches the "Liquidity Proof" system, launching the governance stage] Golden Finance reported that the EVM-based Layer 1 blockchain Berachain will launch its Proof-of-Liquidity (PoL) system today, marking the official launch of its first phase of on-chain governance. The PoL system is designed to decentralize the supply of Berachain governance token BGT to enable on-chain governance. The first implementations will be conducted in a specific DeFi liquidity pool, and Berachain developers say they plan to add a new reward vault outside the initial DEX pool. Berachain’s PoL approach encourages users to provide liquidity to the network while allowing these assets to remain available. Unlike traditional Proof of Stake (PoS) blockchains that lock tokens, Berachain encourages users to pledge assets in the DeFi liquidity pool to earn governance token BGT. Validators then rely on the BGT entrusted to them to increase their influence in consensus, which means that cybersecurity (through validators) is closely linked to the fluidity of the ecosystem.
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