TLDR
- Berachain will activate a hard fork on Wednesday at 4 pm UTC to replace its dual-token incentive model.
- The upgrade will end BGT emissions and shift block rewards to fixed WBERA distributions.
- The Berachain Foundation said the new sWBERA-centered system will create a simpler and more sustainable token economy.
- BERA fell 7% ahead of the hard fork, while its yearly decline widened to 88%.
- Berachain’s TVL dropped 3% to $56 million, as fees and application revenue remained muted.
Berachain will move to a WBERA-based reward system through a hard fork scheduled for Wednesday at 4 pm UTC. The upgrade will stop BGT emissions and simplify network incentives. It will also shift block rewards to fixed WBERA distributions.
Berachain Foundation strives for a “simpler” token economy
Berachain Foundation said the upgrade will remove BGT from the network’s reward structure. The foundation will instead center incentives on sWBERA, the staked form of WBERA. It described the new system as “simpler” and more sustainable.
Berachain previously used two tokens for separate network roles. BERA served as the transferable main token, while BGT supported governance and reward flows. However, users often had to manage several reward paths and staking tools.
The transition started Tuesday with the launch of WBERA emissions. Then, the hard fork will end BGT emissions on Wednesday. Afterward, the network will phase out BGT-linked vaults and liquid staking incentives.
BERA rewards move to WBERA after hard fork
Berachain will distribute fixed WBERA amounts as block rewards after the upgrade. The change replaces the earlier model that used BGT emissions for incentives. As a result, rewards will link more directly to the main token economy.
The network said annual percentage rates could triple after the hard fork. However, Berachain also said yields may change during the first few days. That shift may reflect early adjustments across vaults and staking activity.
The upgrade also changes how users access yield across the chain. Instead of handling BGT-linked reward systems, users will follow the WBERA structure. Therefore, the foundation expects a cleaner incentive design across network applications.
BERA falls 7% ahead of hard fork as network activity remains muted
BERA fell 7% in the 24 hours to 8:34 am UTC, according to CoinMarketCap. The token also extended its yearly decline to 88%. The drop came before the scheduled hard fork.
Berachain total value locked fell by $1.79 million over the same period. That represented a 3% decline, according to DefiLlama data. The network ranked 37th by TVL with $56 million locked.
Berachain also recorded limited network revenue before the upgrade. It generated $41 in chain fees and $3,359 in application revenue over 24 hours. Meanwhile, the network distributed $14,816 in token incentives.
