Berachain launched the first stage of its PoL Next upgrade, which will phase out the BGT token and shift the network's reward system to WBERA.
Berachain is preparing a hard fork that will replace its dual-token incentive model with one centered on its main BERA token.
Set for Wednesday at 4 pm UTC, the hard fork will end Bera Governance Token (BGT) emissions and shift the network's incentive system to Wrapped BERA (WBERA), the Berachain Foundation announced in a Tuesday X post.
Following the upgrade, the network will distribute fixed amounts of WBERA instead of BGT as block rewards. The change replaces Berachain's previous dual-token model, which split the network's functions between the transferable BERA token and the non-transferable governance token BGT.
Berachain said annual percentage rates (APR) could triple after the upgrade, though it warned yields may fluctuate during the first few days.
The Berachain Foundation said the upgrade replaces its BGT-based reward system with one centered on sWBERA, the staked version of WBERA, which it described as simpler and more sustainable.
Before the upgrade, users seeking higher yields had to navigate multiple reward mechanisms and liquid staking tokens tied to BGT.
The transition will occur in two stages. WBERA emissions began Tuesday, while Wednesday's hard fork will halt BGT emissions.
Reward vaults and liquid staking incentives tied to BGT will be phased out in the days following the hard fork.
Related: Solana Foundation launches framework for protocol-level governance
The BERA token fell 7% in the 24 hours to 8:34 am UTC, extending its decline over the past year to 88%, according to CoinMarketCap.
BERA/USD, 1-year chart. Source: CoinMarketCap
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