What is Berachain? A Complete Guide

What is Berachain? A Complete Guide

Berachain is a newly launched Layer-1 blockchain that uses Proof-of-Liquidity (PoL), requiring validators to provide liquidity rather than simply staking tokens. With its mainnet live and an airdrop available, Berachain is positioning itself as a major player in the DeFi space, offering a highly liquid and EVM-compatible ecosystem.

Table of Contents

Text Link

Built on its unique Proof-of-Liquidity (PoL) consensus model, Berachain is designed to optimize liquidity and DeFi efficiency while remaining fully EVM-compatible.

What is Berachain?

Berachain is a Layer-1 blockchain that introduces Proof-of-Liquidity (PoL) — a novel consensus model where validators must provide liquidity rather than just stake tokens. This aligns incentives for users and the network, ensuring that liquidity is always available for DeFi applications.

Key Features of Berachain

  • Proof-of-Liquidity (PoL) – Validators provide liquidity instead of simply staking tokens.
  • EVM-Compatible – Developers can deploy Ethereum-based smart contracts without modifications.
  • DeFi-Centric – Built to support liquidity pools, lending platforms, and decentralized exchanges (DEXs).
  • Active Community & Governance – Users and liquidity providers play a key role in decision-making.

With the Berachain mainnet now live, developers can fully utilize the network, and users can interact with its growing ecosystem.

How Does Proof-of-Liquidity (PoL) Work?

Proof-of-Liquidity (PoL) is what sets Berachain apart from traditional proof-of-stake (PoS) or proof-of-work (PoW) blockchains. Instead of validators staking tokens to secure the network, Berachain requires them to provide liquidity to the ecosystem.

Why PoL Matters

  • Incentivizes Real Economic Activity – Validators must actively participate in DeFi.
  • Enhances Network Liquidity – More liquidity leads to better price stability and lower slippage for traders.
  • Aligns Incentives – Rewards go to those who contribute liquidity rather than just holding tokens.

This model ensures that Berachain remains a high-liquidity network, making it a strong contender in the DeFi space.

Berachain Mainnet Launch: What You Need to Know

The Berachain mainnet launched on February 6, 2025, marking the transition from testnet to a fully operational blockchain. With this launch, Berachain has moved from speculation to real-world use, allowing developers to deploy applications, users to interact with smart contracts, and liquidity providers to earn rewards.

What’s Available on Berachain Mainnet?

  • Onchain transactions & smart contract deployment
  • Berachain-native DeFi applications (lending, DEXs, and liquidity pools)
  • Governance participation for token holders

Berachain Airdrop: How to Claim Your Tokens

As part of its launch strategy, Berachain released an airdrop to reward early adopters. If you’ve interacted with Berachain’s testnet or supported the ecosystem in the past, you might be eligible for free tokens.

How to Check and Claim Your Airdrop

  • Visit the official Berachain airdrop claim page – Always verify links to avoid scams.
  • Connect your wallet – Use MetaMask or another EVM-compatible wallet.
  • Check eligibility – Airdrop allocations are typically based on:
    • Testnet activity
    • Liquidity provision or staking participation
    • Community engagement
  • Claim your tokens – If eligible, follow the steps to receive them.

What Can You Do With Your Airdrop Tokens?

  • Hold & Stake – Given Berachain’s PoL model, staking and liquidity provision could provide additional rewards.
  • Use them in the Berachain ecosystem – Participate in DeFi applications, governance, and trading.
  • Trade on an exchange – If Berachain tokens are listed, users may choose to trade them.

For those who missed this airdrop, staying active in the Berachain ecosystem could lead to future opportunities.

What’s Next for Berachain?

With the Berachain mainnet live, the project has moved from theory to reality. Its Proof-of-Liquidity model, strong DeFi focus, and engaged community make it one of the most promising Layer-1 blockchains of 2025.

Disclaimer

The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.

Join 100,000+ Investors Getting Their Trading Edge From Nansen

Related articles