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ℹ️ Overview of the Berachain
Berachain’s Proof of Liquidity (PoL) mechanism operates through two core components:
- BGT Distribution – $BGT (Berachain Governance Token) is minted and distributed to validators as part of the block production process, tying governance power directly to active participation.
- Incentive Marketplace – Protocols compete to attract validator support by offering incentives, aiming to secure $BGT allocations. This creates a dynamic marketplace where liquidity and validator alignment drive protocol growth.
Together, these components align validator incentives with ecosystem growth while reinforcing liquidity as a core pillar of network security.
