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Nonyours
@tobybell.eth
Dream Bigger on Berachain: Exploring Apps That Shouldn't Exist Anywhere Else.
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Nonyours
@tobybell.eth
A different type of innovation What if there were a chain purpose-built to help its applications succeed? Across the entire Berachain ecosystem, amongst users, dApps, and validators, BGT is crucial and coveted. Users can earn BGT only by depositing PoL-eligible receipt tokens into Reward Vaults, smart-contract pools that gate every emission. But what happens when we think further into the future? The design of PoL creates a continued feedback loop, where productive on-chain actions mint a receipt token, the token gets staked in a whitelisted vault, validators route BGT toward that vault in exchange for incentives, and participants boost the validator with the BGT they earn, increasing its future emissions in the process. The result is a market-driven yet protocol-enforced alignment between chain security, dApp traction, and end-user rewards, moving Berachain beyond classical yield farming toward a flexible incentive fabric. But PoL can enable so much more than “just DeFi” - let’s examine this.
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Nonyours
@tobybell.eth
Seeing Reward Vaults in a new light With the mechanics of BGT emissions and reward-vault gating in place, the next step is understanding how developers can translate real-world or on-chain actions into those emissions and generate productive economic activity on Berachain. The process relies on a simple cycle, turning user activity into a receipt token, routing the token back through a vault, and letting validators compete to direct BGT toward it. Mapping this “Action -> Receipt -> Vault -> BGT” pipeline clarifies how PoL becomes an all-purpose incentive fabric for everything - Captain Jack discussed this in a tweet, but we’ll flesh out the idea a bit more to assist in the rest of the article.
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Nonyours
@tobybell.eth
Action: A user performs an economically valuable activity inside Berachain, like depositing into an LP position, settling an invoice for a tokenized RWA, or providing compute to a DeAI on-chain compute cluster. Receipt: The application mints a proof of that action - a fungible or non-fungible receipt token carrying metadata. If the action produces $0.30 of platform revenue, the dev can decide that subsidizing it with $0.20 worth of BGT is profitable. Vault: The dApp then stakes the receipt on behalf of the user inside a whitelisted reward vault. The vault accumulates BGT over time and users experience the benefits without needing to grasp the technicals. BGT: As validators observe the vault’s incentive-per-BGT rate, they redirect a share of their emissions to capture those incentives. Users harvest BGT, optionally boost validators, or burn BGT for BERA, completing the flywheel.
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Nonyours
@tobybell.eth
That last part is just basic PoL, but it’s the most important to remember. All of this relies on the relationship between BERA and BGT, validators, dApps, and users. The previously mentioned PoL changes were implemented because of outspoken community feedback around how the existing system wasn’t functioning as intended. With the improvements toward X, Y, and Z, PoL is functioning in a much healthier way and is better positioned to benefit various types of reward vaults, not just the large ones.
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Nonyours
@tobybell.eth
Going beyond DeFi PoL’s reach extends well beyond liquidity pools and lending markets. The following examples illustrate how reward vaults could translate invoices, decentralized energy costs, GPU cycles, or in-game actions into BGT emissions, shifting the CAC from dApp treasuries to validator block rewards and aligning Berachain with genuine economic innovation.
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Nonyours
@tobybell.eth
RWAs It’s estimated the gross stock of tokenizable real-world assets sits at somewhere over $800 trillion, yet only a few billion of that is on-chain today. Reward vaults let builders close that gap by subsidizing the exact on-chain actions that create cash-flow receipts. An SME that factors a $10,000 invoice could mint an ERC-20 representing the claim and auto-stake it; validators route BGT toward the vault in exchange for a predictable incentive spread. A more practical RWA vault template could take in every invoice, tokenized T-bill or revenue-sharing agreement and convert it into a fungible cash-flow receipt ERC-20. From here, the dApp’s controller contracts could autostake the receipt token into a whitelisted RWA vault, allowing it to earn BGT emissions while the user sits back.
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Nonyours
@tobybell.eth
These vaults could also integrate other technologies like oracles to handle defaults. In the event of a missed payment on an invoice, the receipt token would become unstaked (no longer eligible for BGT emissions) and unclaimed rewards would be distributed back to the treasury. This process could effectively protect validators from subsidizing bad debt and capital-providers can still tap into rewards without needing to concern themselves with those missing payments. In a world like this, CAC/BGT ratios might become standard across every dApp’s dashboard next to revenues, volumes, and other important metrics.
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Nonyours
@tobybell.eth
DePIN Decentralized Physical Infrastructure Networks convert cap-ex-heavy utilities into open markets. PoL vaults allow every verifiable unit of service to mint a receipt token that funnels BGT to compliant nodes. A Wi-Fi hotspot could stake “proof-of-coverage” NFTs; a solar farm could stake hourly kWh receipts. Validators, lured by the hotspot’s or solar farm’s incentive tokens, supply BGT, effectively underwriting early network build-out with block rewards. Projects can embed “BERA vacuums” - programmed purchases of BERA with a portion of fee income - to deepen native liquidity while still compensating operators in BGT. For a bandwidth or energy-related network, reward vaults could work best if every single “unit of service” was tokenized on-chain. What’s this mean?
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