berachain:The biggest feature is its innovative PoL consensus mechanism, namely proof of liquidity.

🔸One of the biggest benefits of the PoL mechanism is that the protocol can enhance liquidity by acquiring $BGT, and the process of accumulating $BGT is completed through reward vaults.

Let's first understand how PoL works.

⤷In order to start a node, the validator needs to stake 69,420 $BERA mainnet tokens-which can be regarded as the validator's deposit.

⤷When validators are active, they will have the qualifications to protect the network and propose blocks. Once a validator is selected to propose a block, the validator will receive $BGT governance tokens as a block reward.

⤷After the validator obtains $BGT, it is obliged to redistribute them.

⤷Imagine that the validator is a chef who will use the Cutting Board smart contract to split the BGT on hand into different amounts and then send them to one or more reward vaults of his preference.

⤷The so-called reward vaults are HONEY/BERA, STGUSDC/HONEY, BERA/WETH, etc. in BGT Station (https://bartio.station.berachain.com/gauge)

⤷Users have previously provided liquidity to these reward vaults, and at this time, these reward vaults will also distribute the received $BGT to these users according to the user's contribution ratio (LP weight).

⤷Users holding $BGT can decide which validators to delegate to.

⤷The more BGT a validator is delegated, the more $BGT block rewards the validator will receive when proposing a block, so the more BGT the reward vault that the validator chooses to emit can get.

⤷Eventually, the user who provides liquidity to the reward vault will also benefit because he gets more BGT.

🍯 Take the BEX reward vault as an example.

▹BEX is the native AMM protocol of BearChain, which has multiple reward vaults.

▹If a user provides liquidity to BEX's liquidity pool, they will receive the corresponding LP token.

▹For example, a user can provide liquidity to the HONEY-USDC pool and receive $HONEY-USDC LP tokens, which are receipt tokens representing the user's share of the pool.

▹Then, the user can go to the BGT Station and stake the $HONEY-USDC LP tokens to the corresponding reward vault.

▹Since LP tokens are staked in the reward vault and validators emit $BGT to the reward vault, users will continue to accumulate $BGT over time.

�Reward Vaults are created by the RewardsVault Factory, a smart contract on Berachain.

▹While creating a Reward Vault is permissionless, in order for validators to emit $BGT to the vault, a governance proposal must first be submitted.

▹Only after the proposal is approved can the Reward Vault be added to the BGT Station.

▹This process is called "whitelisting".

🔸However, being whitelisted is not easy, and there are several requirements:

▹Minimum holdings: To initiate a proposal, you need to hold or be delegated at least 1,000 $BGT. You can own these tokens yourself, or someone else can delegate their $BGT to you.

▹Delegated/self-delegated voting rights: Even if you hold $BGT yourself, if you want to use these tokens to propose or vote, you need to first "delegate" them, including delegating to yourself.

▹Required standard: The majority of votes must reach a quorum of 2 billion $BGT. This number may be adjusted before the mainnet launch, but on the testnet, the Berachain team is currently helping to reach this standard.