Summary
- Berachain - layer 1 being built on Cosmos - is developed under the POLC - Proof of Liquidity Consensus mechanism and creates a community following the "Bear" meme culture.
- The unique Tri-Token model separates governance, gas fees, and ecosystem stablecoins into different tokens and has multiple value-creating applications for those.
- The development team has experience in the market and is also the team behind the NFT Bong Bears collection. However, these are still two separate projects.
- The large community, especially foreign parties, is paying particular attention to BeraChain, showing the attraction and potential of this project.
- Berachain is still in development and the mainnet is expected to be launched next quarter. According to the recent Honey List event, investors can participate in the project Discord and interact to receive the opportunity to own NFT Bong Bears and increase the possibility of being airdropped.
The emergence of many memecoin ecosystems in recent times, such as Dogechain - $DC, Shibarium - $BONE, $LEASH, Shiba, ... shows that this segment of the market is attracting cash flow.
A burgeoning "Bear" meme-style layer1 - Berachain - is gaining attention and interest from the overseas community so it's worth keeping an eye on. Let's analyze the potential of this project with Holdstation!
Overview
The problem for most Layer 1 applying the current Proof of Stake mechanism is how to optimize profits, use capital most effectively as well as ensure the stable economy for the ecosystem from staked assets (usually investors have to invest for a long time to receive rewards or power in the ecosystem).
Therefore, Berachain - layer 1 built on Cosmos - is developed under the POLC - Proof of Liquidity Consensus mechanism, in order to create integrated liquidity for the system while keeping the strengths of traditional PoS such as fast transaction speed and low cost.
Novel tokenomic model
Berachain tokenomic will follow the tri-token (3 tokens) model.
🐻 $BERA - Gas Token
🍯 $HONEY - Stablecoins
📜 $BGT -Administration Token
Users can stake assets such as Layer1, blue-chip DeFi tokens,... to act as validators or delegate someone they trust to perform this task and will receive block rewards in the form of $BERA.
The amount of staked assets will provide liquidity to the ecosystem through Native DEX, virtualized AMM (paired with $HONEY), perpetual exchange,...or act as collateral allowing users to borrow $HONEY.
The special feature here is that $BGT will follow the NFT standard (non-transferable token). The only way to get $BGT is to stake $BERA. $BGT holders will have the right to vote on activities on Berachain such as assets being staked,... Besides, profits ($HONEY) from platforms will also be divided among $BGT holders and stakers
👉 Stimulating the need to own $BGT. Thereby ensuring the ecosystem operates stably and brings real value to the contributors.
👉 Demand for $BERA is generated from using as gas fees and staking $BERA to get some benefits as mentioned above ⇒ Reducing supply in circulation, increasing value for this token.
👉 $HONEY is used as the main means of payment in Berachain, so the demand is always there. However, the value of $HONEY will still depend on the quality of the products developed in the ecosystem as this token will be tied to other asset classes. Therefore, further monitoring is needed.
The development team
Topped by an anonymous developer with Twitter @itsdevbear (formerly at Apple - self-reported and unverified). However, this Twitter is followed by some influential figures in the crypto market, so it partly shows its credibility.
For the majority of people, there is no incentive to grind, high taxes for high income earners and as mentioned previously less access to funding / talent, so the path of least resistance is to make 70-100k/year working some bleh job and then inherit your parents 2-$3m house.
— Dev Bear 🐻⛓ (@itsdevbear) March 22, 2022
Besides, the team actively interacting with members is also a plus.
In addition, this is also the team behind the NFT rebase project (Hold NFT will be automatically updated with more characteristics or rarity) - Bong Bears.
According to the roadmap, it will deploy 7 rebase sets and is currently in phase 5 - Bit Bear - in late August with the Honeylist event. The selected 112 people minted for 0.32 ETH and it was revealed that they will have benefits in the future. As of the time of writing, the Bit Bear floor price is 0.51 ETH and the total trading volume is 81.1ETH.
👉 Participation rules are not detailed. This is a strategy for curious and hardworking members to interact with the hope of being selected.
Rule #1 of the Honeylist, don't ask about the Honeylist.
— Berachain Foundation 🐻⛓ (@berachain) August 23, 2022
Rule #2 of the Honeylist, there is no specific requirement for the Honeylist. The Honeylist chooses you.
Rule #3 of the Honeylist, the Honeylist does not exist.
👉 Although they are 2 separate projects, it is possible that in the future holders of this NFT will receive an airdrop from Berachain like how SUDO Swap and 0xmons were recently implemented. There is still a chance for the next batch so everyone can participate and interact in Discord to increase the chances of winning the Honeylist.
Community
One of the important factors of memes in particular and crypto projects in general is to build a sustainable supportive community such as Shiba Inu, Dogecoin own a large number of members under the theme of "dog" - every story or product that revolves around this symbol.
Berachain is seriously building a Layer1 with a new mechanism, but this project has a similarity with the current meme community, which is taking the image of a bear as the main character to build a "culture".
Compared to top meme projects like Dogechain or Shibarium, the number of members and activity frequency of the Bera community on twitter and Discord platforms is quite good (mostly foreign).
Roadmap
According to the developer, the mainnet will officially launch in the next 3 months and is currently in the devnet stage.
Some projects may deploy on Berachain such as DEX CrocSwap, Synapse Protocol - AMM stablecoin, OlympusDAO, GumballProtocol, lending platform dAMM Finance,...
Summary
Through the above analysis, Berachain has met 4/8 criteria to evaluate the potential of a project - large community, experienced and active team, token value-added tokenomic as well as innovation with the Tri-Token mechanism. Despite following the Meme culture, Berachain is still presenting itself as a reputable project. Currently, it is still in the development stage but everyone can participate in the project discord to increase their chances of owning a collection of NFTs and airdrop later.
