Berachain has launched the first stage of its PoL Next upgrade, initiating a transition that will phase out the BGT token and shift the network’s reward system to WBERA.
PoL Next: First Stage Goes Live
The upgrade marks a significant change to Berachain’s Proof-of-Liquidity (PoL) design. According to the project, the multi-phase rollout will retire the Berachain Governance Token (BGT) and move staking and validator rewards to WBERA, the wrapped version of the network’s native BERA token.
From BGT to WBERA Rewards
BGT has historically acted as the governance and rewards asset within Berachain’s PoL model, which aligns validator incentives with on-chain liquidity. Under PoL Next, WBERA will become the primary rewards asset. WBERA is designed to represent BERA in an ERC-20–like format, enabling broader compatibility with smart contracts and DeFi protocols while maintaining a 1:1 relationship with the native token.
Why the Shift Matters
- Simplified token economics: Consolidating rewards into WBERA aims to reduce complexity for users and developers.
- DeFi integration: Using a wrapped asset for rewards may improve composability with EVM-based applications and liquidity venues.
- Governance evolution: Phasing out BGT suggests a reconfiguration of how governance and incentives are structured on the network.
What Comes Next
The team plans to implement the transition in stages. Further details on the full deprecation timeline for BGT, governance adjustments, and any conversion or migration processes are expected from official Berachain channels. Network participants, including validators and application teams, should monitor project updates to ensure compatibility as subsequent phases roll out.