This week, the Governance Guardians approved PoL V2, the most significant upgrade to Berachain’s Proof-of-Liquidity system since launch. This change introduces a native, protocol-level yield source for $BERA, reinforcing the value of the network’s base asset while preserving the mechanics that make Berachain the most application-aligned L1 in the ecosystem.

PoL V2 modifies the way PoL incentives are distributed, redirecting 33% of rewards into a new staking mechanism for $BERA. This change introduces a simple, protocol-native way for $BERA holders across both centralized exchanges and DeFi products to earn on-chain yield without the added layer of third-party apps, wrappers, or complex token mechanics.

Key features of PoL V2 include:

• Native protocol yield for $BERA, accessible on-chain and via CEX listings
• A 7-day unbonding period 
• Buybacks that convert non-$BERA protocol incentives into $BERA
• Future LST staking support, allowing stakers to increase network security while earning from validator rewards and PoL emissions simultaneously

PoL V2 was designed to be minimally disruptive and highly additive, expanding the utility and demand profile for $BERA without altering the roles of $BGT or disrupting existing vault mechanics.

The Guardians also approved the addition of $USDT as whitelisted collateral for minting $HONEY, Berachain’s native stablecoin. Previously limited to $USDC and $BYUSD, this expansion gives users broader flexibility when minting $HONEY, while maintaining the protocol’s fully collateralized design. The addition of $USDT as a collateral type increases access to $HONEY minting across ecosystems and trading venues while preparing the protocol for greater usage across payments, liquidity flows, and DeFi integrations.

Finally, two new Reward Vaults were approved as RFRV Batch 17. These vaults include memecoin-based LST loops and derivative-driven LP pairs that deepen core liquidity for $BERA and its yield-bearing variants.

BEX POOLS (Vault Proposer — Pair)
• Ultraviolet — uvBERA/wBERA

NON-DEX VAULTS (Proposer — Utility)
• Henlo — Henlo Wall Vault

All requests for amendments to existing vaults were approved, with the Labs team coordinating with teams to swap out incentives or make necessary changes.

Disclaimer: Approval by Governance Guardians of a new vault or any parameter changes does not mean endorsement or promotion of such vault or changes. Governance Guardians approve items based on set criteria, which are published in https://blog.berachain.com/blog/berachain-governance-update-new-rfrv-standards-a-clearer-path-forward. None of what is noted herein should be construed as financial advice or recommendation. Users of vault are strongly encouraged to conduct their own research before using such a feature