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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting a strategic shift in its incentive structure, Berachain has executed a hard fork upgrade that halts the emissions of its non-transferable governance token, BGT. According to reports, the new system transitions to distributing fixed amounts of Wrapped BERA (WBERA) as block rewards. This protocol change arrives as the network's total value locked (TVL) stands at approximately $56 million, following a recent decline of $1.79 million.
This transition within Berachain occurs amid a broader DeFi trend toward simplifying dual-token models that often complicate user engagement. Compared to other Layer 1 protocols, DeFiLlama data indicates that networks like Arbitrum and Optimism maintain significantly higher liquidity levels, placing pressure on Berachain to enhance the attractiveness of its rewards. Market experts suggest that shifting to WBERA may provide participants with greater immediate liquidity compared to BGT tokens, which were strictly limited to governance functions.
Looking ahead, traders are monitoring whether the TVL stabilizes following this fundamental change in the dividend distribution mechanism. With real-time price data for the network's tokens currently unavailable, focus remains on liquidity performance in the coming days. Investors should also watch broader market catalysts, such as the US ISM Services PMI data due on July 6, 2026, which could influence general risk appetite across digital asset markets.