Berachain hard fork to replace dual-token model with WBERA rewards
Berachain is preparing a hard fork that will replace its dual-token incentive model with one centered on its main BERA token.
Set for Wednesday at 4 pm UTC, the hard fork will end Bera Governance Token (BGT) emissions and shift the network's incentive system to Wrapped BERA (WBERA), the Berachain Foundation announced in a Tuesday X post.
Following the upgrade, the network will distribute fixed amounts of WBERA instead of BGT as block rewards. The change replaces Berachain's previous dual-token model, which split the network's functions between the transferable BERA token and the non-transferable governance token BGT.
Berachain said annual percentage rates (APR) could triple after the upgrade, though it warned yields may fluctuate during the first few days.
Berachain Foundation strives for a “simpler” token economy
The Berachain Foundation said the upgrade replaces its BGT-based reward system with one centered on sWBERA, the staked version of WBERA, which it described as simpler and more sustainable.
Before the upgrade, users seeking higher yields had to navigate multiple reward mechanisms and liquid staking tokens tied to BGT.
The transition will occur in two stages. WBERA emissions began Tuesday, while Wednesday's hard fork will halt BGT emissions.
Reward vaults and liquid staking incentives tied to BGT will be phased out in the days following the hard fork.
Related: Solana Foundation launches framework for protocol-level governance
BERA falls 7% ahead of hard fork as network activity remains muted
The BERA token fell 7% in the 24 hours to 8:34 am UTC, extending its decline over the past year to 88%, according to CoinMarketCap.
BERA/USD, 1-year chart. Source: CoinMarketCap
Berachain's total value locked (TVL) fell by $1.79 million, or 3%, over the same period. The network ranks 37th by TVL with $56 million locked, according to DefiLlama. Over the past 24 hours, Berachain generated $41 in chain fees and $3,359 in application revenue while distributing $14,816 in token incentives.
Magazine: Has Bitcoin bottomed for this cycle? Analysts say 'not yet'
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Broadcom (AVGO.US) Raises Market Concerns by Backstopping Massive AI Financing; Credit Risk Indicators Climb as Wall Street Warns of Accumulating ‘Hidden Leverage’
As the scale of financing for artificial intelligence infrastructure continues to expand, the bond market is beginning to reassess the potential credit risks undertaken by Broadcom.
Overnight US Stocks | The three major indexes closed mixed; Bitcoin and gold continued last week's uptrend; Nvidia (NVDA.US) fell nearly 3%
At the close, the Dow Jones rose by 140.14 points, or 0.26%, to 53,417.16 points; the S&P 500 Index fell by 21.51 points, or 0.28%, to 7,652.86 points; and the Nasdaq declined by 200.26 points, or 0.76%, to 25,980.19 points.
Solana simulation evaluates SGP-03 fee impact on major apps and routers
Wall Street pours cold water on the US Treasury: Even with a trillion-dollar Treasury account, buybacks may struggle to lower long-term Treasury yields
Deutsche Bank believes that if the U.S. Treasury General Account (TGA) provides funding for U.S. Treasury repurchase operations, the overall impact on reserves and short-term debt supply may largely offset each other. Goldman Sachs argues that even if the Treasury expands repurchase operations, it is difficult to "reset" long-term interest rates, as repurchase operations do not address the main sources of recent long-term bond volatility—fiscal deficits and inflation. Institutions such as Wells Fargo are similarly pessimistic, believing that long-term yields still face "structural" pressure and expecting the U.S. Treasury yield curve to further steepen.
Crypto prices
More
