> ## Documentation Index
> Fetch the complete documentation index at: https://docs.berachain.com/llms.txt
> Use this file to discover all available pages before exploring further.

# BGT Token

> Governance and rewards token; earning and delegation.

Proof-of-Stake blockchains typically have a single token that is used to secure the network through staking and is additionally used for gas, governance, and economic incentives. `$BGT` and the two-token model bifurcate the first two functions from the latter two.

Through Berachain's two-token Proof-of-Liquidity (PoL) model, the functions of governance and economic incentives (emissions & block rewards) are separated into their own token - `$BGT` (Bera Governance Token). `$BGT` is non-transferrable and can only be acquired by engaging in productive activities within the Berachain ecosystem.

## Earning `$BGT`

`$BGT` is earned by performing certain actions in dApps with whitelisted [Reward Vaults](/general/proof-of-liquidity/reward-vaults). Most of the time, this is related to providing liquidity, but it is not limited to this. Reward Vault deposits correspond to some form of productive activity on Berachain.

Typically, you supply liquidity and receive a receipt token for that activity, which you can then stake in reward vaults to earn `$BGT`. Some examples include:

* Depositing liquidity in the native BEX for an LP pair whitelisted to earn `$BGT` emissions
* Supplying assets to a lending market and staking the interest-bearing receipt tokens in a reward vault

You can see available earning options at [Berachain Hub Pools](https://hub.berachain.com/pools).

You can claim accumulated `$BGT` from Berahub.

## What can you do with `$BGT`?

### Governance

`$BGT` is used to vote on governance proposals. `$BGT` holders are responsible for a wide variety of ecosystem decisions (see [Reward Vault Governance](/general/governance/reward-vault-governance)).

`$BGT` holders can either vote on proposals themselves or delegate their voting power to another address. This governance delegation operates independently of boosting validators for controlling their `$BGT` emissions.

### Earn

#### Boost a validator for incentives

You can select validators to "boost" with your `$BGT`, increasing the validator's [block rewards](/general/proof-of-liquidity/block-rewards). The amount of [Incentives](/general/proof-of-liquidity/incentives) earned is determined by validators' aggregate boost. These incentives are returned to the `$BGT` holders who boosted the validator.

#### dApp fees

If you boost validators with your `$BGT`, you earn a share of Berachain core dApp fees, namely fees from BEX and HoneySwap. This is done via the `FeeCollector` contract.

At a high level, `FeeCollector` auctions fees collected from dApps for `$WBERA` and then distributes them pro rata to `$BGT` holders who have boosted validators.

### Redeem `$BGT` for `$BERA`

`$BGT` can be redeemed (burned) 1:1 for `$BERA`. This is a one-way function, and `$BERA` cannot be converted into `$BGT`. This limits the ability to earn the chain's economic incentives solely to `$BGT` holders.