What is BGT (Berachain)?
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🟢 The simple version
Plain English — no jargon. Start here.
BGT is Berachain's non-transferable governance token earned only by providing liquidity to whitelisted DeFi gauges — it cannot be purchased — and is the mechanism behind Berachain's novel Proof of Liquidity consensus where validators and DeFi protocols are economically aligned.
BGT cannot be bought
Most governance tokens can be bought on exchanges. BGT is different: you can only earn it by providing liquidity to whitelisted Berachain DeFi pools (gauges). BGT redeems 1:1 for BERA (Berachain's tradeable gas token, burned in the process) or can be used for governance. Proof of Liquidity: validators earn BGT and must direct it toward DeFi pool gauges. Protocols bribe validators to direct BGT their way (like Curve's gauge wars, but at the consensus layer). Is BERA legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
Berachain tri-token system
BERA: tradeable gas token. BGT: non-transferable governance (earned by LPing only). HONEY: native stablecoin. BGT→BERA 1:1 redemption (BGT burned). Design intent: governance must come from active DeFi participants, not passive token purchasers.
🟣 The full technical picture
For the technically curious.
Key facts
- BGT: Non-transferable (earn by LPing only)
- BERA: Tradeable gas token (BGT→BERA 1:1)
- HONEY: Native stablecoin
- PoL: Validators direct BGT to DeFi gauges