🐻⛓️ Berachain Core Docs

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$BGT ​

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Proof of Stake blockchains have a governance token that is used to secure the network through staking with validators. Oftentimes, this is the main network token and is used for gas, staking, governance and economic incentives.

However, because of Berachain's three-token Proof of Liquidity model, the functions of governance and economic incentives are separated into its own token. This token is $BGT (Bera Governance Token).

$BGT is non-transferrable and can only be acquired by providing liquidity in PoL-eligible assets (e.g. liquidity on Bex).

Earning $BGT ​

$BGT can be accumulated by performing certain actions in authorized dApps. Reward vaults correspond to some form of liquidity provided on Berachain, and are created after those pools are whitelisted (by $BGT governance). Users can subsequently deposit that liquidity in reward vaults to earn $BGT. 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 the bHONEY vault for Berps

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, discussed in Governance. $BGT holders can either vote on proposals themselves or delegate their voting power to any other address. This governance delegation operates independently of delegating to validators for controlling $BGT emissions.

Earning Rewards ​

Protocols can provide Incentives to attract $BGT emissions from validators. The amount that validators can earn in protocol incentives is determined by the amount of $BGT that is delegated to them. Thus, validators that return the maximum value to their $BGT delegators are likely to receive the most delegations.

Furthermore $BGT delegators collect a share of Berachain core dApp fees, namely fees from Bend, BEX and Berps.

Burning for $BERA ​

$BGT can be 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.