Berachain has officially launched the first phase of its PoL Next upgrade, phasing out the Bera Governance Token (BGT) and transitioning the network’s entire reward system to Wrapped BERA (WBERA). The core hard fork is scheduled for Wednesday at 16:00 UTC, marking the end of BGT emissions and a turning point from the dual-token incentive model that has long defined Berachain.
From Dual Tokens to a Single Reward Stream
Previously, Berachain split its network functions between BERA (the tradable token) and BGT (the non-transferable governance token) - users chasing higher yields had to navigate multiple reward mechanisms alongside liquid staking tokens tied to BGT. The Berachain Foundation stated that the new scheme centered around sWBERA (the staked version of WBERA) is far simpler and more sustainable. The transition is taking place in two stages: WBERA emissions began on Tuesday, while Wednesday’s hard fork completely halts BGT emissions. Reward vaults and liquid staking incentives still tied to BGT will be phased out within days after the hard fork goes live.
Tempting Yields, but BERA Price Falters
The Berachain Foundation claims that the annual percentage rate (APR) could potentially triple post-upgrade, though it warned that yields could fluctuate sharply in the initial days of the transition. Ironically, the optimistic yield projections stand in stark contrast to BERA’s market performance - falling 7% in the last 24 hours and extending its one-year decline to 88%, according to CoinMarketCap data. The gap between promising technical narratives and secondary market price reality has drawn scrutiny from the community.
This overhaul reflects a broader trend across DeFi: projects are racing to simplify previously complex tokenomics mechanisms to reignite user interest. However, the true effectiveness of this move can only be assessed after several reward cycles run normally - not just from on-paper APR claims, but from whether market confidence in its core token recovers.
Reported via Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
