Key facts
- Berachain's hard fork will replace its dual-token model with a single-token system focused on BERA.
- The upgrade will cease emissions of the Bera Governance Token (BGT).
- Network rewards will shift to Wrapped BERA (WBERA).
- The Berachain Foundation aims for a simpler and more sustainable token economy.
- BERA token experienced a 7% price decrease in the 24 hours prior to the hard fork.
Berachain is implementing a hard fork to transition its incentive model from a dual-token system to one centered on its main BERA token. Scheduled for Wednesday at 4 pm UTC, the upgrade will halt emissions of the Bera Governance Token (BGT) and redirect network rewards to Wrapped BERA (WBERA).
The Berachain Foundation stated that this change aims to create a simpler and more sustainable token economy. Previously, users had to navigate multiple reward mechanisms and liquid staking tokens tied to BGT to achieve higher yields. Following the hard fork, fixed amounts of WBERA will be distributed as block rewards instead of BGT.
The transition is occurring in two stages, with WBERA emissions beginning Tuesday and the hard fork on Wednesday halting BGT emissions. Reward vaults and liquid staking incentives linked to BGT will be gradually phased out in the days after the fork.
Ahead of the hard fork, the BERA token saw a 7% price decrease in the 24 hours leading up to 8:34 am UTC, extending its yearly decline to 88%. The network's total value locked (TVL) also decreased by 3%, or $1.79 million, during the same period. Berachain currently ranks 37th in TVL with $56 million locked.