Berachain Testnet Overview (Plus Airdrop Info)
Berachain is one of the most-hyped blockchain launches of 2024, and could very well represent the endgame of tokenomics with its innovative triple-token flywheel model. With an anticipated launch sometime before the end of the year, users have been flocking to their testnet to explore their innovative use cases and test the hundreds of applications that will be available upon launch. Most importantly, many are speculating that testnet activity will be a criterion for an eventual token airdrop, meaning that simply interacting with some of these projects could net users thousands of dollars in BERA tokens. Let’s take a look at the Berachain ecosystem, interesting projects, and how to get started.
Berachain is an innovative blockchain platform that stands out for its unique consensus mechanism known as Proof-of-Liquidity (PoL). Built on the Polaris framework and the CometBFT (previously known as Cosmos/Tendermint) consensus engine, Berachain is designed to be EVM-compatible. This design choice not only supports Ethereum’s smart contract tooling but also introduces additional functionalities tailored for decentralized applications and interoperability with other Cosmos SDK-based chains like Celestia and Osmosis, placing Berachain in a unique value proposition.
The tokenomics of Berachain are centered around three primary tokens: BERA, HONEY, and BGT (Bera Governance Token), each playing a crucial role within its Proof-of-Liquidity ecosystem. BERA functions as the network’s “gas token,” facilitating transactions and paying transaction fees. BGT, on the other hand, is integral to the PoL model and is obtained by staking BERA. It is used for governance purposes, allowing holders to delegate to validators for decision-making and vote on liquidity pool incentives. Interestingly, BGT is non-transferable and can only be earned through staking, which aligns users with governance rights more appropriately than other chains. Staking BGT allows users to earn HONEY, an overcollateralized stablecoin used on the Berachain decentralized exchange. This model aims to improve liquidity within the blockchain, address stake centralization issues, and foster a cohesive relationship between validators and the protocols they support, promoting long-term stability and growth of the blockchain.
In early 2024, Berachain released their first testnet, called Artio, giving the public a first taste of what this token model looks like in practice. Since the launch, 47 projects have deployed on the chain, and there should be nearly 100 available upon mainnet launch. Rumors are circulating that the best way to become eligible for a Berachain airdrop is by interacting with the testnet and its various apps and features. Though this might be true, the most sure-fire way to gain exposure to BERA is by buying the six official Bera NFT collections, namely the Bong Bears, Bond Bears, Boo Bears, Baby Bears, Band Bears, and Bit Bears, though these could cost a minimum of $10,000.
There are six main Berachain-created protocols on the blockchain: the DEX, the HONEY stablecoin, the lending protocol, a perpetual exchange, governance, and the block explorer. After getting BERA from the testnet faucet, playing with these apps provides valuable insight into how Berachain will work. For example, the perpetual exchange is denominated in HONEY, allowing for trades to easily be compared against the dollar. Additionally, BGT is awarded to liquidity providers on numerous pairs on the DEX. The pools, or smart contracts in general, that get awarded BGT are voted on by network validators.
One recently-released protocol is Beranames — the ENS-type service for Berchain allowing for human-readable addresses. It is a great example of what Berachain enables, as the revenue from address registration goes into Proof of Liquidity and allows the names to pay for themselves. Though a simple use case, these types of unique applications are what make Berachain such an exciting project.
Berachain’s emphasis on aligned tokenomics in a never-before-seen model makes it an extremely exciting project. Whether or not the model works remains to be seen, but with the amount of interest from investors, developers, and users alike, future success seems highly probable.
By Lincoln Murr
