Berachain is a Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain built on top of a modular consensus client framework called BeaconKit. This modular design allows for flexible consensus upgrades and innovations, including its groundbreaking PoL mechanism. The core of Berachain’s innovation lies in its ability to merge DeFi liquidity with blockchain security through PoL, where validators stake liquidity in DeFi protocols to validate transactions and produce blocks.

This dual-purpose consensus model makes Berachain ideal for DeFi applications that require both liquidity and security. By integrating DeFi liquidity into the very foundation of its consensus, Berachain ensures that its network is highly secure, while also offering liquidity providers enhanced rewards, creating a win-win situation for the ecosystem.

Proof-of-Liquidity (PoL)

At the heart of Berachain's uniqueness is its Proof-of-Liquidity (PoL) consensus model, which solves key problems around decentralization and liquidity. In PoL, validators do not simply stake native tokens (as in PoS), but instead, they stake liquidity pool (LP) tokens or other liquidity-based assets. This means that validators must provide liquidity to the network—such as liquidity for decentralized finance (DeFi) protocols—in order to participate in consensus and secure the network.

This model has two powerful effects. First, it ensures that the network remains secure and decentralized, as validators have significant "skin in the game" by staking valuable liquidity. Second, it provides deep liquidity to the DeFi ecosystem on Berachain, fueling dApps, decentralized exchanges (DEXs), and lending protocols.

Validators are rewarded for staking liquidity and validating transactions through block rewards and fees. This creates a powerful incentive loop where validators benefit from network participation, while the ecosystem as a whole grows more liquid and capital-efficient.

PoL solves two major problems in blockchain ecosystems: securing the network and ensuring sufficient liquidity for DeFi and other dApps. By requiring liquidity staking, Berachain creates a blockchain where network security and DeFi liquidity are directly linked.

EVM Compatibility

Berachain is fully Ethereum Virtual Machine (EVM) compatible, which allows developers to deploy existing Ethereum-based decentralized applications (dApps) and smart contracts on the network with minimal adjustments. Developers can utilize familiar tools such as Solidity, Truffle, and Hardhat, making it easy to migrate or build applications from scratch without requiring a new learning curve.

This compatibility ensures that Berachain supports the extensive ecosystem of Ethereum dApps, opening the door for developers to leverage Berachain’s superior performance and lower transaction costs while retaining the flexibility and reliability of the Ethereum environment.

Scalability and Performance

Berachain is built to handle a high volume of transactions without the bottlenecks seen in older blockchains like Ethereum. This scalability is critical for applications that require fast, low-cost transactions, such as gaming dApps, decentralized finance (DeFi) platforms, and non-fungible token (NFT) marketplaces.

• High Throughput: Berachain can process significantly more transactions per second (TPS) than legacy blockchains, making it suitable for real-time applications and large-scale dApps that need to handle thousands of users or micro-transactions.

• Low Latency: With faster block times and reduced confirmation delays, Berachain ensures that transactions are finalized quickly, improving the user experience for dApps that require instant or near-instant settlement.

Berachain achieves this without sacrificing security or decentralization, thanks to the efficient PoL model and modular BeaconKit framework, which are designed to scale as demand increases.

BeaconKit

BeaconKit is a versatile consensus framework that integrates the CometBFT algorithm with any EVM execution environment. It pairs seamlessly with EVM clients via the Engine API, offering full EVM compatibility and flexibility for both Layer 1 and Layer 2 solutions.

Key Features:

• Modular Design: Easily integrate custom components like block builders, rollups, and data availability layers, making it adaptable for various blockchain needs.

• Performance Boosts: Achieves single-slot finality (vs. Ethereum’s ~13 minutes) and reduces block times by 40% through optimistic payload building.

• Eth2 & EIP Compatibility: Fully aligned with Eth2 standards and supports EIPs for seamless upgrades.

BeaconKit gives Berachain a powerful, flexible foundation for high-performance dApps, offering faster finality, lower block times, and modular adaptability. Its EVM compatibility ensures that developers can easily migrate projects from Ethereum while benefiting from Berachain’s unique PoL consensus and liquidity-driven security model.

BeraChain’s defining characteristic is its innovative Proof-of-Liquidity (PoL) consensus mechanism. Rather than using traditional Proof-of-Stake (PoS) or Proof-of-Work (PoW), BeraChain’s PoL enables participants to stake liquidity positions (assets) in decentralized finance (DeFi) protocols as part of the consensus process. This integrates DeFi liquidity with blockchain security, making the entire system more capital-efficient.

Here are key reasons to build on BeraChain:

1. Proof-of-Liquidity (PoL) Consensus: PoL aligns network security with DeFi activity, incentivizing liquidity providers to contribute to the blockchain’s security while earning rewards.

2. High Performance: BeraChain is optimized for Ethereum Virtual Machine (EVM) compatibility while delivering fast transaction speeds and scalability through its modular framework, BeaconKit.

3. Low Fees: BeraChain offers low-cost transactions, making it an ideal choice for high-volume cross-chain activity.

4. DeFi Integration: BeraChain is uniquely positioned to support liquidity-driven applications, attracting projects and users from the broader DeFi space.

BeraBridge is a fully decentralized cross-chain bridge built to operate on the Berachain ecosystem. It enables users to transfer assets between Berachain and other major blockchains, initially Ethereum. BeraBridge is a key part of Berachain's mission to facilitate interoperability across decentralized finance (DeFi) ecosystems, while ensuring fast, low-cost, and secure cross-chain transactions.

BeraBridge is uniquely designed to take advantage of Berachain's Proof-of-Liquidity (PoL) consensus, where liquidity staked within the ecosystem secures both the network and the bridge, ensuring trustless and decentralized operations.

Key Features of BeraBridge include:

• Decentralized Governance: BeraBridge relies on community participation through governance tokens.

• High Interoperability: The bridge supports multiple chains, making asset transfers simple and efficient.

• Security and Scalability: Leveraging Berachain’s unique consensus mechanism, the bridge ensures secure and scalable operations.

• Validator-driven Consensus via Proof-of-Liquidity (PoL): Built on Berachain, BeraBridge inherits the innovative PoL mechanism, which optimizes liquidity for consensus and block production.

• Low Fees: The bridge leverages Berachain's low-cost infrastructure, ensuring minimal transaction fees for users.

• Liquidity Incentives: Validators not only secure the network but also drive liquidity into Berachain’s DeFi ecosystem, benefiting users and developers alike.

Relayers are responsible for transmitting messages between different blockchains. They act as the communication layer between BeraChain and Ethereum. Their role includes:

• Monitoring Transactions: Relayers observe transactions on the source chain, such as Ethereum, and report them to the destination chain (BeraChain).

• Verifying Validity: They ensure the transactions meet all the necessary conditions (e.g., correct asset amounts, destination address) before forwarding the data.

• Relaying Data: Once verified, relayers send the transaction data across to the destination chain, where it is processed by the corresponding smart contracts.

Relayers are critical to ensuring that messages and transaction details are properly transmitted between chains, maintaining the integrity of cross-chain operations.

BeraBridge is designed to facilitate seamless cross-chain asset transfers between Ethereum and BeraChain, offering a robust, decentralized bridge that leverages the strengths of both ecosystems. The core architecture of BeraBridge is composed of multiple components that work together to ensure trustless and secure cross-chain token transfers. These components include:

1. Cross-Chain Relayers

2. Validators (via Proof-of-Liquidity)

3. Bridge Smart Contracts

4. Oracle System for Price Feeds and Data Accuracy

Each of these elements plays a distinct role in the functionality of BeraBridge, ensuring that the bridge remains decentralized, secure, and transparent for its users.

Security is paramount in any cross-chain protocol, and BeraBridge employs multiple layers of protection to safeguard user assets and ensure the integrity of the system. The bridge is built with security-focused best practices and offers a decentralized governance model for future updates.

• Smart Contract Audits: All smart contracts are thoroughly audited by third-party security firms before deployment, ensuring there are no vulnerabilities that could be exploited.

• Multi-Sig Validation: Key operations, such as token minting and burning, are protected by multi-signature verification. This ensures that no single entity has control over the contract, maintaining decentralization.

• DAO Governance: In the future, BeraBridge will implement a decentralized governance model, where $BBRG token holders can vote on protocol changes, feature implementations, and other important decisions. This governance layer ensures that the community has a direct say in the evolution of BeraBridge.

• Fraud Detection: BeraBridge integrates real-time monitoring systems that detect fraudulent activities, such as double-spending attempts or manipulation of asset transfers. These systems alert validators and relayers to suspicious behavior, allowing them to take preventive action.

Security features integrated:

• Time-Locked Transactions: Certain high-level operations, such as major protocol updates, are time-locked, ensuring that users have sufficient notice and opportunity to act if needed.

• Bug Bounties: BeraBridge runs a bug bounty program to incentivize security researchers to find and report vulnerabilities, ensuring that the bridge remains secure and operational.

In BeraChain’s Proof-of-Liquidity (PoL) consensus mechanism, validators are liquidity providers who secure the blockchain by staking liquidity in decentralized finance (DeFi) pools. In BeraBridge, validators ensure the correctness and security of cross-chain transactions.

Validators perform the following functions:

• Transaction Verification: Validators monitor incoming cross-chain transactions, ensuring that assets have been properly locked on the source chain and can be unlocked or minted on the destination chain.

• Consensus Participation: As part of PoL, validators participate in the consensus process by proposing and voting on blocks that contain cross-chain transactions.

• Incentivization: Validators earn rewards for their participation in securing the bridge, with incentives tied to their liquidity contributions in DeFi pools.

• Security through Liquidity: By staking liquidity (e.g., liquidity pool tokens), validators secure both the BeraChain network and BeraBridge itself. If validators attempt to act maliciously or dishonestly, they can be penalized by losing their staked liquidity.

This Proof-of-Liquidity model not only secures the network but also drives liquidity into Berachain’s DeFi ecosystem, making the network and bridge more capital-efficient.

Validator Consensus Process:

• Validators monitor the source chain to ensure that tokens have been properly locked.

• They then confirm that the corresponding wrapped tokens can be minted on the destination chain.

• The transaction is finalized once consensus is reached, ensuring that the tokens are securely transferred and the correct amount of liquidity is maintained.

Oracles are critical for enabling communication between different blockchains. Since BeraBridge operates across multiple blockchains, cross-chain oracles are required to provide real-time, verifiable data that confirms the status of transactions on different chains.

Responsibilities of Cross-chain Oracles:

• Confirming Transactions: Oracles monitor the blockchain where the tokens are being locked (source chain) and notify the destination chain that the tokens are locked and ready for minting.

• Ensuring Data Integrity: Oracles ensure that the data being transmitted between the source and destination chains is accurate and consistent. This prevents the risk of incorrect minting or unlocking of tokens.

• Decentralization: BeraBridge uses a decentralized oracle system, meaning multiple oracles work together to verify the status of transactions, reducing the risk of a single point of failure or manipulation.

• Oracle Selection: Similar to validators, the oracles must be decentralized to maintain the trustless nature of the bridge. They are selected based on their ability to provide accurate and timely information.

The oracles act as the communication layer of BeraBridge, ensuring that both the source and destination chains stay synchronized during cross-chain transfers.

BeraBridge’s architecture is tightly integrated with BeraChain’s Proof-of-Liquidity (PoL) consensus mechanism. PoL is an innovative consensus model where validators stake liquidity in decentralized finance (DeFi) protocols to secure the network, rather than simply staking tokens as in traditional Proof-of-Stake (PoS) models. This makes Berachain and BeraBridge especially well-suited for DeFi applications and liquidity-driven ecosystems.

How PoL Enhances BeraBridge’s Architecture

1. Increased Capital Efficiency: Validators use liquidity pools as their stake, which means that the staked liquidity is simultaneously securing the network and earning rewards in DeFi protocols. This aligns the interests of liquidity providers with the security of the blockchain.

2. Higher Security: Since validators must maintain significant liquidity positions to participate in the consensus process, they are highly incentivized to behave honestly, as their capital is at risk if they attempt malicious activities.

3. DeFi Integration: Validators earn rewards not only through consensus but also by participating in the broader DeFi ecosystem. This makes PoL ideal for cross-chain applications, where liquidity is critical to both security and functionality.

4. Decentralized Governance: PoL also ties into the governance model, allowing validators and liquidity providers to vote on key decisions about the bridge’s development, fees, and upgrades.

By integrating PoL, BeraBridge benefits from an advanced security and consensus model that leverages liquidity, making it highly suitable for DeFi applications and scalable cross-chain operations.

The cross-chain transfer process on BeraBridge is designed to be secure, trustless, and efficient. Here’s how it works step by step:

1. Locking Assets

When a user initiates a transfer from one chain to another (e.g., from Ethereum to BeraChain), the assets are locked in a smart contract on the source chain. For example, if the user is transferring ERC-20 tokens from Ethereum, those tokens are locked in the Ethereum smart contract.

2. Transaction Verification

The transaction is then picked up by the relayers and validators, who verify that the correct amount of assets has been locked. This involves checking that the sender has provided the correct destination address, asset type, and transfer amount.

3. Minting or Unlocking Assets

Once the transaction is verified, the destination chain’s smart contracts either:

• Mint new tokens: If the destination chain operates on a wrapped-token model, new tokens representing the locked assets are minted on the destination chain (e.g., wrapped BeraChain tokens on Ethereum).

• Unlock existing tokens: If the destination chain uses a locked-token model, previously locked tokens are unlocked and transferred to the user’s wallet.

4. Burn/Unlock Process for Reverse Transfers

When the user wants to send assets back to the original chain, they initiate a burn or lock transaction on the destination chain. This burns the minted tokens or locks them in a smart contract. Validators and relayers again verify the transaction, after which the original assets are unlocked on the source chain and transferred to the user’s wallet.

PoL participants play an essential role in maintaining the security, performance, and decentralization of BeraBridge. These participants can be grouped into three main categories:

1. Liquidity Providers (LPs)

2. Validators

3. Governance Token Holders

Each group has specific functions, responsibilities, and incentives tied to their involvement in the ecosystem. Their participation ensures that BeraBridge operates in a trustless and decentralized manner, allowing for secure and efficient cross-chain transfers.

Reward Vaults are smart contract-based repositories where rewards, including transaction fees and $BBRG tokens, are stored before being distributed to eligible participants. They are programmed to allocate rewards based on the contributions and activity of users within the BeraBridge platform, ensuring that liquidity providers, governance participants, and other contributors are compensated fairly and automatically.

These vaults are an integral part of the Proof-of-Liquidity (PoL) system, which ties rewards directly to liquidity provision and participation in governance. The Reward Vaults are continuously filled by transaction fees generated from cross-chain asset transfers, and from specific allocations of the native $BBRG token reserved for rewarding community members.

Types of Rewards Distributed by the Vaults

1. Bridge Fee Rewards

2. $BBRG Token Bonuses

3. Special Airdrops and Early Participation Bonuses

Role of Validators

Validators in the BeraBridge ecosystem have a dual role in maintaining network security and verifying cross-chain transactions. In the PoL framework, validators stake liquidity tokens derived from their participation in DeFi pools, rather than simply staking native tokens as in traditional PoS systems. Validators are responsible for validating and securing transactions, ensuring that assets are transferred between chains in a trustless, decentralized manner.

Responsibilities of Validators:

• Transaction Verification: Validators monitor and validate transactions between different blockchains connected to BeraBridge. This includes ensuring that assets are properly locked on the source chain and minted or unlocked on the destination chain.

• Block Production: Validators are responsible for producing new blocks, which contain transaction data. These blocks are added to the BeraChain blockchain, and the validators reach consensus on which block to add next based on their staked liquidity.

• Maintaining Security: Validators help protect the network from malicious activities such as double-spending or attacks by validating only legitimate transactions.

Becoming a Validator

To become a validator, participants must stake a substantial amount of liquidity tokens. The more liquidity a validator stakes, the greater their influence in the consensus process and the higher their chances of being selected to produce blocks and validate transactions.

Incentives for Validators:

• Block Rewards: Validators receive rewards for producing blocks and validating cross-chain transactions. These rewards are distributed proportionally to the amount of liquidity they have staked.

• PoL Staking Rewards: Validators earn a share of the overall staking rewards in the PoL system. These rewards come from transaction fees, cross-chain bridge fees, and protocol incentives.

• Liquidity Earnings: In addition to earning validator rewards, validators also benefit from the returns generated by their staked liquidity in DeFi protocols. This dual-reward system makes PoL validators highly incentivized participants.

Role of Governance Token Holders

Governance Token Holders play an important role in the decentralized governance of BeraBridge. These participants hold governance tokens that grant them voting power, allowing them to influence decisions on protocol upgrades, fee structures, and network changes. In the PoL system, governance token holders can propose and vote on key issues related to BeraBridge’s operation.

Responsibilities of Governance Token Holders:

• Voting on Proposals: Governance token holders participate in voting on proposals for upgrades, fee adjustments, or new features on BeraBridge.

• Proposing Changes: Governance token holders can submit proposals for changes to the BeraBridge protocol. If enough tokens back the proposal, it is put to a vote and, if approved, implemented by the network.

Incentives for Governance Token Holders:

• Influence Over Protocol Direction: Governance token holders have a direct say in how BeraBridge evolves, ensuring that decisions reflect the community’s needs and goals.

• Potential Staking Rewards: In some cases, governance tokens can also be staked, offering token holders additional rewards or enhanced voting power.

Governance token holders ensure that BeraBridge remains a decentralized and community-driven platform, aligning the interests of all participants.

Since BeraBridge facilitates the movement of assets across different blockchains, a bridging fee is applied to each transaction. These fees are collected in the Reward Vaults and used to incentivize Validators and LPs for their role in ensuring the secure transfer of assets between chains.

How It Works:

• Fee Collection: Each cross-chain transaction generates fees, which are sent to the vault.

• Distribution to LPs: The vault distributes these fees proportionally to LPs based on their contribution to the bridge's liquidity pool.

• Continuous Payouts: As long as LPs keep their liquidity locked in the pool, they continue to earn a share of the transaction fees in real time.

Flow:

1. A user transfers tokens from Ethereum to BeraChain.

2. A transaction fee is collected and sent to the Reward Vault.

3. Liquidity Providers (LPs) automatically receive their share of the fee based on the size of their liquidity stake.

This creates a steady stream of passive income for LPs, incentivizing them to continue providing liquidity to the BeraBridge ecosystem.

BeraBridge is designed for multi-chain interoperability, enabling users to move assets between different blockchain networks with ease. Initially, BeraBridge supports the following blockchains:

1. BeraChain

As the native blockchain, BeraChain is fully integrated into BeraBridge. All asset transfers to and from BeraChain are processed using BeraBridge’s smart contracts and validators, ensuring high performance and low fees. BeraChain’s PoL model also adds an extra layer of security for assets being bridged.

2. Ethereum

Ethereum is the most widely used blockchain for decentralized applications, particularly in DeFi. BeraBridge supports ERC-20 token transfers to and from Ethereum, enabling users to take advantage of Ethereum’s liquidity and ecosystem while benefiting from BeraChain’s scalability and lower fees.

3. Additional Blockchains

BeraBridge is designed with modularity in mind, allowing for the seamless integration of additional blockchains over time. As the project evolves, more blockchain ecosystems will be supported, further increasing the utility and reach of BeraBridge.

Role of Liquidity Providers

Unlike traditional consensus mechanisms like Proof-of-Stake (PoS) or Proof-of-Work (PoW), which rely on staking tokens or computational power, PoL uses liquidity staked in DeFi pools to secure the network. This consensus model aligns blockchain security with DeFi activity, making the network more capital-efficient while securing BeraBridge’s cross-chain operations.

BeraBridge relies on the liquidity provided by participants to verify and secure transactions, particularly during asset transfers across different blockchains. By staking liquidity, participants not only ensure the network’s integrity but also earn rewards from both the DeFi ecosystem and the cross-chain transaction fees.

Key Responsibilities of LPs:

• Providing Liquidity: LPs supply liquidity in the form of token pairs (e.g., ETH + $BBRG) to the bridge pools. This liquidity is used to facilitate swaps between Ethereum and BeraChain, enabling cross-chain transfers.

• Staking Liquidity Tokens: LPs receive liquidity tokens in exchange for their assets, and these tokens are staked to help secure BeraBridge. In return, LPs earn rewards for their contributions.

• Earning Fees and Rewards: In addition to the fees earned through providing liquidity, LPs receive PoL staking rewards, which are generated from network fees, transaction fees on BeraBridge, and validator rewards. These rewards are distributed in proportion to the liquidity provided.

Incentives for LPs:

• Dual Rewards: LPs earn rewards from two sources:

  • DeFi Rewards: Interest, trading fees, or yield generated from DeFi activities within the liquidity pools.

  • PoL Staking Rewards: Validators’ staking rewards, which are distributed to LPs based on their contribution to the PoL framework.

• Network Participation: By staking liquidity, LPs become active participants in securing BeraChain’s consensus mechanism, giving them a direct influence on the network's stability and security.

• DeFi Liquidity Growth: LPs benefit from increased capital efficiency, as their staked liquidity serves both the blockchain’s consensus and the broader DeFi ecosystem. This unique integration maximizes the utility of their assets.

Coming soon

To further reward community members and incentivize early adopters, BeraBridge’s Reward Vaults will occasionally distribute airdrops and special bonuses. These rewards account for 3% (~15,000,000) of the total supply (500,000,000) of $BBRG tokens and are targeted at users who have shown early support for the platform or completed specific tasks that benefit the ecosystem.

How It Works:

• Airdrops: Reward Vaults distribute airdrops of $BBRG (or other tokens) to users who meet specific criteria, such as early liquidity provision, participation in promotional events, or engagement with governance.

• Early Liquidity Providers: Those who provide liquidity in the early stages of the platform’s development will receive additional $BBRG tokens as a reward for their early commitment.

• Task-Based Rewards: Users who complete quests in the Quest Portal (e.g., promoting BeraBridge on social media, inviting friends, or adding liquidity) will receive rewards from the vault.

Example Flow:

1. A user adds liquidity to the pool during the platform’s early phase.

2. The vault automatically distributes an airdrop of $BBRG tokens to the user.

3. The user can redeem the tokens once BeraBridge launches on BeraChain, further increasing their potential rewards.

Airdrops and bonuses help attract early participation and create strong incentives for users to stay engaged over the long term.

Coming soon

BeraBridge applies a 5% transaction fee (tax) on both buy and sell transactions involving the native $BBRG token. This tax ensures the platform's sustainability and liquidity, while supporting various aspects of the ecosystem.

Breakdown:

• 5% Buy/Sell Tax: A 5% tax is applied to all $BBRG token purchases and sales.

• Locked for Liquidity: All collected fees are locked for a minimum of one month (or until the Berachain mainnet is live) and used to enhance liquidity, ensuring a stable and liquid trading environment.

This tax structure helps maintain a healthy ecosystem, ensuring long-term stability and liquidity for BeraBridge participants.

Coming soon

BeraBridge charges a minor fee for each cross-chain message transfer, designed to cover the costs of decentralization and security while remaining affordable for users. This fee, paid in $BBRG, BeraBridge's native token, ensures the platform's continuous operation and incentivizes validators who secure the network.

How It Works

• Dynamic Fees: For each cross-chain transfer, a small fee in $BBRG is deducted from the user’s wallet on the originating chain (e.g., Ethereum). These fees are transferred to the protocol treasury to support ongoing operations and development.

• Validator Rewards: Half of all bridge fees are sent to Reward Vault to reward BeraBridge Validators, who play a crucial role in maintaining the security and reliability of cross-chain operations. Validators are financially accountable, with their staked assets serving as guarantees for the protocol’s proper functioning.

Transparency

All fees are fully transparent and can be viewed through the BeraBridge Explorer or retrieved from the BeraBridge smart contract, ensuring users can track their transaction costs with ease.

This minor fee structure supports the security and decentralization of BeraBridge while keeping user costs low and competitive.

The BeraBridge token, $BBRG, is central to the platform’s operations, governance, and incentives, supporting various use cases and ensuring the smooth functioning of the ecosystem. Below is an overview of the token allocation and its primary use cases.

Token Details:

• Name: BeraBridge

• Symbol: $BBRG

• Total Supply: 500,000,000

Token Allocation:

$BBRG Use Cases

• Liquidity: Stake $BBRG in liquidity pools to earn fees and rewards.

• Bridge Fees: Pay minor cross-chain transfer fees with $BBRG.

• Governance: Vote on protocol changes and governance proposals.

• Rewards: Earn $BBRG through LP contributions, airdrops, and quests.

• Marketing: Promote the platform and grow the community.

Smart contracts are the backbone of BeraBridge’s trustless operation. They automate the entire process of locking, minting, and unlocking assets, ensuring that there’s no need for intermediaries or central authorities. Each supported blockchain has its own set of smart contracts, which perform the following roles:

• Locking Assets: When a user transfers assets from one blockchain to another, the assets are locked in a smart contract on the source chain. This ensures that the user cannot use those assets on the source chain while they are being bridged.

• Minting/Unlocking Assets: Once the transaction is verified, smart contracts on the destination chain either mint new tokens (representing the bridged assets) or unlock pre-existing tokens.

• Burning Tokens: When assets are sent back to the original chain, the minted tokens on the destination chain are burned, and the locked assets are released back to the user.

By using smart contracts, BeraBridge ensures that asset transfers are fully transparent and governed by code rather than intermediaries, preserving decentralization.

As part of our commitment to building an engaged and decentralized community, BeraBridge introduces the Quest Portal, where users can earn points for completing various tasks on the BeraBridge testnet. These points will make participants eligible for the BeraBridge airdrop, distributed in $BBRG tokens. The following sections outline the eligibility requirements and distribution process for the airdrop.

Eligibility Criteria for Airdrop

To be eligible for the $BBRG airdrop, participants must complete tasks on the Quest Portal to accumulate points. The higher the points, the greater the chances of receiving a larger share of the airdrop. The eligibility requirements include:

1. Participation in BeraBridge Testnet: Users must interact with the BeraBridge testnet, completing tasks that involve key protocol functionalities such as bridging assets, using testnet faucets, and inviting friends.

2. Minimum Point Threshold: A minimum number of points will be required to qualify for the airdrop. This ensures that participants actively contribute to the growth of the network. Specific point thresholds will be announced closer to the airdrop distribution date.

3. Genuine Participation: Actions like spam invites, repeated low-quality transactions, or attempts to game the system will lead to disqualification. Only genuine participation that enhances the protocol’s development will be rewarded.

Airdrop Task Breakdown

Participants earn points by completing the following tasks:

These points will contribute to the final point balance, which will be used to determine a participant’s share of the $BBRG token airdrop.

Airdrop Distribution Specifications

The airdrop will be allocated based on the total points each participant accumulates during the testnet phase. The distribution process includes the following key parameters:

1. Token Distribution Proportional to Points Earned

The number of $BBRG tokens a participant will receive is proportional to their total points earned during the testnet. The more points accumulated, the larger the airdrop reward. Participants are encouraged to interact meaningfully with the testnet to maximize their share.

2. Vesting Period

Airdropped $BBRG tokens are subjected to a vesting schedule to encourage long-term engagement and prevent immediate sell-offs. The exact vesting period will be announced closer to the airdrop.

3. Distribution Timeline

The airdrop distribution will occur after the completion of the Berachain mainnet launch. All eligible participants will receive their $BBRG tokens in their registered wallets within a specified window post-launch. Details on the exact timeline will be communicated via official BeraBridge channels.

4. Fair Distribution

To ensure fairness, a portion of the total airdrop pool will be reserved for smaller participants who may not accumulate as many points as others but still contribute meaningfully. This ensures a balanced and equitable token distribution that benefits both early and large contributors.

Transparency and Verification

• On-Chain Transparency: The entire airdrop process will be on-chain, ensuring that participants can verify the points they earned and the corresponding $BBRG tokens they receive.

• Smart Contract Audits: The distribution will be conducted through audited smart contracts, ensuring that rewards are distributed fairly and securely without any central control.

How It Works:

• Bonus Distribution: The Reward Vaults release $BBRG tokens to participants who provide liquidity, take part in governance, or complete tasks within the Quest Portal.

• Early Participation Bonuses: Users who contribute liquidity early in the platform's lifecycle are eligible for larger $BBRG bonuses, encouraging long-term participation.

• Governance Staking: Participants who actively engage in governance, such as voting on protocol proposals, may also receive $BBRG rewards from the vault.

Flow:

1. A user provides liquidity to the bridge pool.

2. The vault allocates $BBRG tokens to the user as a reward for their contribution.

3. The user can hold these tokens for governance voting or trade them on supported exchanges.

These token bonuses incentivize users to support BeraBridge’s long-term success, by providing liquidity, securing the network, and actively participating in the governance process.