BGT Token
Proof of Stake blockchains have a governance token that is used to secure the network through staking with validators. The economic value of all the tokens staked in the network adds up to form the security of the chain. Oftentimes, this is the main network token.
However, because of Berachain's Proof of Liquidity model, this token is BGT
(Bera Governance Token).
BGT
is non-transferrable and can only be acquired by depositing liquidity in the native BEX.
How to Get BGT
BGT
can be accumulated by performing certain actions in authorized dApps. Some examples include:
- Depositing liquidity in the native BEX for an LP pair that is earning
BGT
emissions - Borrowing
HONEY
on Bend - Providing
HONEY
in thebHONEY
vault for Berps
What can you do with BGT?
BGT
, when delegated to a validator, can be used to create and vote on governance proposals such as proposals that decide on which LP pools receive BGT
emissions. Once delegated, you will start earning various rewards from the network.
BGT
can also be burned 1:1 for BERA
. This is a one-way function, BERA
cannot be converted into BGT
.