Builder's Honest Take
No Bullshit, Just Building
"If you want to build something that lasts, you have to be willing to call out the cracks in the foundation."
After 3.3+ years investing in Berachain, I'm still here—bullish, but not blind. This isn't a pitch or a victory lap. It's a builder's take: what's working, what's broken, and what needs to change if Berachain is going to matter in the next cycle. The hype has faded, the tourists are leaving, and what's left is the core—those who care enough to call out the cracks and still show up to build.
Inspired by Ozzy (@MEADGod) and the honest feedback of Smokey (@SmokeyTheBera)
Community Reflections
"Think there's some very good points in here Ozzy - the majority of which are definitely well acknowledged by the core team. Hindsight is def 20/20 and there's stuff that I'd do differently... for Boyco, it would have likely been a lot more related to the selection of assets, a deeper focus on majors + much greater selectivity (if anything) re: LSTs etc. That can also incur even more political problems, as apps might feel snubbed around inclusion etc, but ultimately we made opinionated choices, and some were def incorrect."
— Smokey, @SmokeyTheBera
— Smokey, @SmokeyTheBera
"The part of this which I agree with MASSIVELY is the need to operate outside of an insular echo chamber. Berachain has real builders, and strong ones at that. From many convos this week, I can see that other ecos, funds, and founders are pretty aware of that. But in many cases, we've played or PVP'd in our own sandbox as opposed to building effective onboarding funnels, and kind of hoped that launching a token would cause people to want a product."
— Smokey
— Smokey
"There's a ton of teams (new and old) building things with demand, products that can ultimately generate revenue, onboard massive usergroups, and actually drive value to the whole Bera ecosystem. That's unironically why I'm excited about stuff like Wai Protocol, Credito, Strato, Kettle, USDai, Daylight and others which can drive net new use cases (including institutional), and de-correlated userbases which aren't primarily reliant on the ~10k people who actually do stuff on-chain."
— Smokey
— Smokey
"Sometimes things look dark and scary and sometimes they are dark and scary. But other times it's a matter of perspective and zooming out with a little cope sprinkled on top. The only way out is through and that's exactly where we're gonna go. Appreciate the insights and words, both kind and unkind, from you and the community as a whole. They make us better in the long run."
— Smokey
— Smokey
What Makes Berachain Different?
Proof-of-Liquidity (PoL) v1.1
Dynamic incentive redistribution for sustainable yield.
PoL v1.1 introduces a variable-rate fee (starting at 20%) on application-paid incentives to balance value accrual between BGT and BERA. This shift moves capital efficiency toward BERA and chain-wide liquidity, with proceeds building Chain Owned Liquidity (CoL) for BERA pairs. The dynamic formula ties redistribution to incentive efficiency, estimated to generate low 8-figures in revenue for BERA supply sinks.
Builder's Note: The transition from easy-mode yield to sustainable flywheel-driven ecosystem marks a new era of maturity.
ETH-Native Integration
BEND: The next wave of yield.
Berachain's upcoming BEND protocol promises ETH-native yield opportunities, allowing users to deposit wETH, borrow BERA/stablecoins, and deploy into BEX LPs while earning PoL incentives, fees, and validator rewards.
Builder's Note: The integration of ETH as a productive asset within Berachain opens new opportunities for yield generation.
Chain Owned Liquidity (COL)
Protocol-owned liquidity pools.
COL captures value from BGT emissions to seed BERA-native LPs like BERA-HONEY and BERA-wBTC, creating deeper liquidity and more sustainable yield opportunities.
Builder's Note: This shift toward protocol-owned liquidity represents a more mature approach to ecosystem growth.
EVM Compatibility
No walls, just bridges.
Berachain is EVM-native, so the best ideas from across the ecosystem can migrate here. It's not about maximalism—it's about making it easy for new projects and users to plug in, remix, and push the space forward.
Builder's Note: The tech is there. Now we need to attract the right builders and users.
Berachain at a Glance
On paper, Berachain's features are competitive. But features alone don't drive adoption—real traction comes from solving for the right users, at the right time. The challenge now is to move from potential to practice.
| Feature | Berachain |
|---|---|
| Primary Asset | BERA, HONEY, BGT |
| Loan Currency | HONEY (native) |
| Collateral Requirement | Varies by protocol |
| Repayment Terms | Protocol dependent |
| Platform Maturity | Emerging |
| Current Focus | ETH-native yield, BEND |
Who Is Berachain For Now?
The next chapter isn't about chasing retail or appeasing degens. It's about building for:
ETH-Native Yield
The focus shifts toward ETH-native yield opportunities through BEND and other protocols, creating sustainable yield mechanics that benefit the entire ecosystem.
Chain Utility
With PoL v1.1, capital is being reallocated toward chain utility and liquidity depth, creating a more sustainable foundation for long-term growth.
Protocol Innovation
New protocols like BEND are emerging to create modular, Aave-like systems deeply integrated with the PoL flywheel, offering new opportunities for yield generation.
Ecosystem Standouts
The Bera ecosystem is powered by a new generation of teams and products, both established and emerging. These builders are driving real demand, onboarding new user groups, and creating value beyond the core. Notable teams include:
- Wai Protocol (@wai_protocol)
- Credito (@credidotfi)
- Strato (@strato_hk)
- Kettle (@kettle_shop)
- USDai (@USDai_Official)
- Daylight (@daylightenergy_)
- PuffPaw (@puffpaw_xyz)
- PlayWithOU (@playwithOU)
- Eden (@EdenWeb3_Global)
- PawPass (@usepawpass)
- Berakin (@Berakin_io)
These and other teams are building products with real demand, onboarding new users, and helping Berachain break out of its echo chamber. If you're building, you're part of the story.
What's Changing & How We Adapt
PoL v1.3: Enhanced Efficiency
Dynamic Reward System
PoL v1.3 introduces more frequent BGT reward allocations (every 3 hours vs. 5 hours), enabling faster response to changing incentives and liquidity pool performance. This aims to improve capital efficiency and better align rewards with real-time ecosystem activity.
Expanded Protocol Support
The update broadens support beyond the initial 37 whitelisted pools, allowing non-ERC20 protocols to participate through innovative integration methods. This inclusivity encourages more dApps to build on Berachain, potentially boosting TVL and user engagement.
Validator & Governance Improvements
Enhanced Incentives
New algorithmic tools like "BeraBoost" optimize reward distribution, enhancing the validator-liquidity provider relationship. Stricter controls on emission allocation and governance safeguards address centralization risks and maintain the stability of the BGT soulbound token system.
Risk Mitigation
The update introduces safeguards against governance attacks and excessive BGT burning, ensuring BGT remains a reliable governance tool while preserving the decentralized ethos of PoL.
User Experience & Ecosystem Impact
Simplified Participation
Enhanced transparency around validator commissions and reward vault performance, combined with simplified processes for earning BGT, aims to increase user participation and reduce the post-launch activity decline.
Market Stabilization
These refinements aim to address post-launch challenges: declining TVL ($3.5B to $578M), transaction rate drops (to 4% of launch volume), and stablecoin reserve decreases. By boosting liquidity retention and reducing sell pressure, PoL v1.3 could help stabilize the ecosystem.
The Market Paradox: Hype vs. Price
TVL vs. Real Usage
While TVL remains near $1B, stablecoin reserves have dropped another 12% to $176M, and KodiakFi (the main DEX) has fallen to $338M with a 75% monthly decline. This reveals a concerning pattern of minimal actual usage despite high TVL numbers.
Volume-to-TVL Ratios
The real issue becomes clear when comparing trading volume to TVL ratios:
- Orca: $3.5B weekly volume on $321M TVL (Solana)
- Quickswap: $233M volume on similar TVL
- Shadow Swap: $341M volume from just $53M TVL
- Berachain DEXs (BurrBear & BEX): Minimal trading activity relative to locked value
The Airdrop Hedging Effect
When sophisticated actors receive large airdrops they can't touch for N days, they often hedge their positions through shorting, especially when the project launches directly onto CEXs with perpetual futures. This creates significant sell pressure as participants try to guarantee their airdrop value at predetermined price points.
The Launch Strategy Question
Berachain's decision to time their whitepaper, CEX listings, Mainnet launch, and airdrop simultaneously creates a "flash in the pan" effect. While this looks impressive on metrics platforms like Kaito, it may not translate to sustainable long-term value.
From Meme to Mainnet
The transition from community-driven hype to actual utility is critical. With roughly the same TVL as Venus and less than AAVE, Berachain faces an uphill battle as an L1 competing in the DeFi space. The most lucrative incentive distribution has already occurred, making sustainable growth more challenging.
The Reality Check
When projects claim "this is innovation, you don't understand" but the market doesn't engage, the problem usually lies with the design, not user comprehension. Markets vote with their wallets, and Berachain's volume-to-TVL ratio tells a clear story about real adoption versus manufactured metrics.
Beyond the Initial Hype: Market Realities
Private Investor Impact
Over 35% of BERA's supply was allocated to private investors across multiple funding rounds at increasing FDVs ($50M, $420M, and $1.5B). This high allocation, combined with long vesting periods, creates persistent selling pressure. Allegations of insider selling, including a co-founder swapping 200k BERA for WBTC and ETH, have further eroded investor confidence.
Network Metrics Decline
Post-launch analytics show a sharp drop in network activity, with transaction rates falling to 4% of launch peak. TVL has declined from $3.5B at launch, with daily revenue now below $10k. The initial hype around Boyco vaults failed to sustain user engagement.
Token Unlocks & Technical Indicators
Upcoming token unlocks pose significant concerns: 10M tokens ($32M) in May 2025, followed by 63.2M tokens in February 2026, and monthly releases of 13.28M tokens. Technical analysis shows weakening trend strength, with RSI at 29 (oversold) and breakdown of key support levels.
Stablecoin Ecosystem
Stablecoin reserves have plunged from $1.38B to $578M, the lowest since February 2025. This decline in critical transaction settlement liquidity signals reduced network utility and has contributed to the token's price crash.
Market Positioning & Competition
The high initial FDV ($7B-$10B) created unrealistic expectations, leading to sharp corrections. While the PoL model is innovative, its focus on liquidity provision rather than trading may limit appeal to degen traders. The simultaneous launch of other L1s (Movement Labs, Monad, megaETH) has diluted investor attention and capital.
The Path Forward
Despite these challenges, Berachain's substantial war chest and exchange listings ensure its place in the conversation. However, sustaining long-term value will depend on real utility and developer activity as the initial hype fades. The project must transition from marketing-driven growth to fundamental value creation.
Where Do We Go From Here?
"The best chains are built by those who care enough to call bullshit—and then do the work."
The Bera ecosystem is unique for its density of talent and the camaraderie among builders. Even when things look dark, the community keeps showing up and shipping. That's our edge. If you're here, you matter. Let's lock in, support each other, and write history together.