What Is Berachain: Tokenomics, Airdrop, and How It Works?
Author:Published on: 11 Feb 2025, 6:31 amKey Insights:Berachain is an EVM-identical Layer-1 blockchain with a novel "Proof of Liquidity" consensus mechanism.An Ethereum-identical architecture based on the Cosmos SDK allows users to bridge their assets, DeFi assets, and even dapps to the Berachain with minimal effort.Berachain also comes with its own DEX, DeFi protocol, and a futures trading platform.The platform is also going to launch an airdrop for its few selected early users.What is Berachain and BERA Token?Berachain is a layer-1 blockchain that has a unique consensus mechanism that hands out the power of governance based on the amount of liquidity one provides to the network. This novel consensus mechanism called the "Proof of Liquidity" is a rather new one.Berachain was built using the Cosmos SDK and is fully EVM identical, which means that even though it does not run on Ethereum EVM, the dapps, DeFi protocols, and platforms on any Ethereum or EVM blockchain (Base, Polygon, Arbitrum, etc.) can work on the Berachain. This design is expected to help Berachain gather users as well as projects from Ethereum, which just need to create a copy of their project and deploy it on Berachain.The blockchain has three tokens: BERA, BGT, and HONEY. BERA is the native token and is used to pay the gas fee on Berachain. BGT is a Berachain Governance Token and has been kept separate from the native token BERA to avoid security issues even if BERA's price tumbles. HONEY, on the other hand, is a stablecoin and is expected to provide liquidity to the Berachain ecosystem.The Berachain team has also developed a few dapps: BEND, BEX, and BERPS. BEND is the borrowing and lending DeFi protocol on Berachain. BEX is a decentralized exchange. BERPS is the decentralized leveraged trading platform that provides KYC-less accounts, respecting user privacy.BERA Price Prediction 2025 to 2030Berachain was launched on 7 February at $1. Since then, its price has skyrocketed to $5 within 4 days.In the coming few days, as the Berchain airdrop gains momentum, we expect its price could grow to $7 (min) to $10 (max) in the Q1 of 2025.Top Berachain AlternativesIt is rather difficult to find such a low-fee blockchain like Berachain with a complete ecosystem. However, we have brought you a few blockchains that are equivalent in terms of Berachain, are low fees, and also have top-notch security.Cosmos (ATOM), on whose SDK the Berachain is built, is a general-purpose EVM-independent blockchain. It has a proof of stake consensus and has been one of the most well-developed blockchains. At current markets, its native token ATOM is the 50th largest by market cap.Algorand (ALGO) is yet another blockchain that has all the features that you need for a safe and secure crypto investing or trading experience. It has its own dual-layered proof of stake blockchain that has an inbuilt scaling system to keep transaction fees in check. What makes Algorand unique is its quantum proofing, which prevents any security threat. The Tinyman DEX and several other DeFi platforms provide security.Berachain has set aside 100 million BERA or 15.75% of its token supply for airdrop, valued at $500 million. The airdrop will be allocated to these users:Testnet usersRequest for Brobosal - Participants in community programsBoyco - Depositors of Boyco launch programSocial media followers on X and DiscordBerachain NFT HoldersBNB HODLersStrategic partnersDisclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.