Berachain has initiated the first stage of PoL Next, an upgrade designed to simplify the network's tokenomics by eliminating BGT and routing all rewards through WBERA instead.
The shift marks a departure from the network's original dual-token architecture. BGT was introduced as a loyalty token tied to Berachain's Proof of Liquidity consensus mechanism, where validators stake liquidity and earn BGT alongside BERA. The redesign consolidates these streams into a single token, reducing the operational friction for node operators and users managing multiple reward types.
According to Cointelegraph, Berachain did not announce a fixed timeline for subsequent stages of the upgrade. Stage one appears to have focused on launching the infrastructure to support WBERA-based rewards, though specific distribution schedules or mechanics for converting existing BGT positions remain unclear.
The upgrade signals a practical adjustment to Berachain's incentive layer. Running a validator currently requires managing BGT claims, BERA holdings, and liquidity staking positions across different protocols. Consolidating rewards into WBERA cuts down operational overhead, though it also reduces the network's ability to separately tune validator and user incentives through independent token levers.
Protocol designers often use multiple tokens to isolate different incentive pools—loyalty rewards separate from security rewards, for instance. A single-token model trades flexibility for simplicity. Whether Berachain's validator set sizes and liquidity depth remain stable through the transition will depend partly on WBERA's price action and how attractively the new reward structure compares to competing chains.
The upgrade also affects users who have accumulated BGT through staking or yield farming. No token swap mechanics or conversion rates have been disclosed, creating some uncertainty about how existing BGT holdings will be treated once stage two or three rolls out. Operators will need to track Berachain's communications for those details.