Berachain has executed one of its most significant protocol changes since mainnet launch, retiring the BGT era and introducing a redesigned Proof-of-Liquidity framework called PoL Next. The upgrade, which includes a hard fork scheduled for July 8 at 16:00 UTC, streamlines the network's token economics and aims to boost staking returns by up to three times.
End of the Three-Token Model
Berachain originally operated with three distinct tokens: BERA as the gas token, BGT as a non-transferable governance and rewards asset, and HONEY as the native stablecoin. PoL Next eliminates this complexity by consolidating incentives around a single staked token, sWBERA. BGT will no longer be emitted after the hard fork, and all staking rewards will flow through mechanisms tied to staked BERA.
The Berachain Foundation stated that the goal is to simplify participation for users and developers while better aligning network incentives with protocol activity. The move reduces the overhead of managing multiple ecosystem tokens and focuses value capture on BERA.
Mandatory Migration for BGT Holders
Users holding BGT or BGT liquid staking tokens (LSTs) must manually convert their assets to sWBERA using official tools available in the Berachain Hub portfolio section. The foundation emphasized that the migration will not occur automatically. Wallet holders are responsible for initiating the conversion before or after the hard fork to continue earning rewards under the new system.
Dedicated migration support is being rolled out within the Hub interface to facilitate the process. However, assets left in BGT or BGT LSTs after the transition will not be converted without user action.
Potential for 3× Higher APRs
According to the Berachain Foundation, annual percentage rates (APRs) are expected to fluctuate during the initial post-hard fork period as the new incentive model stabilizes. Despite short-term volatility, the foundation estimates that APRs could increase by as much as three times under the redesigned system. No fixed APR has been guaranteed, and actual returns will depend on network participation and staking conditions.
The projected increase stems from consolidating emissions around sWBERA rather than distributing rewards through the previous BGT-based model. The new structure directs incentives toward staked BERA, supporting long-term network participation.
Broader Market Context
The upgrade comes amid a broader trend of blockchain networks simplifying tokenomics to attract more users and developers. Similar moves have been seen in other ecosystems aiming to reduce friction and improve capital efficiency. For investors tracking crypto infrastructure developments, Berachain's shift may signal a maturing approach to incentive design.
In related news, Pi Network's staking upgrade has also fueled bullish sentiment, while BingX upgraded its trading platform with institutional-grade charting tools. These developments highlight the ongoing evolution of crypto infrastructure.
What Investors Should Watch
The PoL Next hard fork marks a new chapter for Berachain, retiring the BGT era and pivoting to a BERA-centric economy. Existing participants must complete the manual migration to remain active in the staking and rewards system. The success of the upgrade will depend on user adoption and the stability of the new incentive model.
As the network transitions away from its original three-token framework, investors should monitor on-chain metrics such as staking participation rates, sWBERA issuance, and APR trends to gauge the impact of PoL Next.
This article is for informational purposes only and does not constitute financial advice.
