#What major changes did Berachain's upgrade introduce?
The recent hard fork in the Berachain network marked a significant shift in its token structure. By implementing the Proof-of-Liquidity Next upgrade, Berachain has effectively retired the BGT token, transitioning rewards to WBERA and its staked variant, sWBERA. This move consolidates the reward system and simplifies the overall process for users, removing the previously complex framework of governance votes and multiple tokens for rewards.
The new fixed per-block emission rates outline that validator operators will receive 0.4 WBERA for each block, while reward vault distributors will obtain 1.305 WBERA. This new payout approach aims to provide clearer and more predictable returns compared to the convoluted methods utilized in the past.
#How will BGT holders be affected?
BGT, which once played a central role in the governance and reward allocation system, has been fully phased out. Users holding BGT can redeem their tokens through the Hub UI, as any remaining allowances were automatically migrated to the new system. Stakers now have straightforward options for reward claims, choosing between sWBERA or the native asset, BERA. For most, this update will require no additional action from them.
#What are Emissions Return Agreements and why do they matter?
Besides the move towards a simpler token model, the upgrade lays the foundation for Emissions Return Agreements, also known as ERAs. These agreements aim to ensure that emissions are directed toward projects that generate real on-chain revenue and utility, instead of focusing on those leveraging governance to exploit reward systems. This strategic shift emphasizes sustainable growth within the ecosystem.
The upgrade is not an abrupt change, as it follows revisions initiated during the PoL v2 updates in 2025, which already began adjusting emissions towards BERA. The testnet deployment for this latest upgrade occurred in late May 2026, allowing the community ample time to engage and test before the mainnet implementation.
#What implications does this have for the Berachain ecosystem?
Initially designed with a tri-token approach, Berachain's ecosystem has now consolidated into a simpler BERA/WBERA/sWBERA model. This adjustment effectively eliminates the previous structure that included the governance-only BGT and the stablecoin HONEY. While this streamlining could lead to increased efficiency, it also raises concerns about the concentration of governance power within the BERA framework. The benefits of this new structure depend significantly on the practical performance of the ERA framework in fostering true decentralization and utility.
As these changes unfold, observing how the Berachain community navigates this transition will be crucial in understanding the long-term effects on its ecosystem.