The BERA cryptocurrency (or Berachain – BERA) is a digital currency / native token of a new blockchain network known as Berachain. Here are the key basic information about it:
🪙 What is BERA?
BERA is the native digital currency of the Berachain network, which is a Layer-1 blockchain designed to provide decentralized finance (DeFi) services and smart contract applications, and it is compatible with the Ethereum Virtual Machine (EVM), making it easier to run applications that operate on the Ethereum network on this system without significant changes.
⚙️ How does it work?
Utility Token: BERA is used to pay transaction fees (Gas) within the network and to participate in staking — that is, securing the network by locking tokens.
Three-Token System: The system operates with three tokens:
BERA: for base currencies, paying fees, and securing.
BGT: governance token used for voting on network decisions (non-tradable).
HONEY: stablecoin pegged to the dollar within the system.
New Consensus Mechanism (Proof-of-Liquidity): The Berachain network uses a trust-aggregating mechanism among liquidity providers to ensure network security (different from traditional Proof-of-Work like Bitcoin) while encouraging liquidity provision in decentralized protocols.