Berachain retires BGT era, eyes up to 3× APR with PoL Next upgrade

Berachain has launched one of the biggest changes to its network since its mainnet debut, replacing its original Proof-of-Liquidity (PoL) framework with a redesigned system known as PoL Next.

The upgrade marks the beginning of the end for the BGT era as the network shifts toward a simpler, single-token economic model centred on BERA.

The hard fork is scheduled for July 8 at 16:00 UTC, according to the Berachain Foundation.

Alongside the protocol changes, the foundation has introduced a migration plan that requires users holding BGT and BGT liquid staking tokens (LSTs) to manually convert their assets to sWBERA through official tools available in the Berachain Hub.

The overhaul changes how rewards are distributed across the network while placing greater emphasis on BERA as the token that captures value within the ecosystem.

PoL Next replaces Berachain's three-token model

Berachain originally launched with a three-token structure consisting of BERA, BGT and HONEY.

Each token served a different purpose. BERA functioned as the network's gas token, BGT acted as a non-transferable governance and rewards token, while HONEY operated as the ecosystem's native stablecoin.

With PoL Next, that structure is being streamlined.

The redesigned system phases out the role previously played by BGT in network incentives and governance rewards.

Instead, staking activity will revolve around sWBERA, allowing the protocol to consolidate incentives around BERA rather than maintaining separate reward and governance assets.

The move represents a major change to Berachain's economic design.

Rather than relying on a multi-token incentive model, the network will direct emissions and staking rewards through mechanisms tied to staked BERA.

The Berachain Foundation said the goal is to simplify participation for both users and developers while improving the alignment between network incentives and protocol activity.

The updated framework also seeks to reduce the complexity associated with managing multiple ecosystem tokens.

BGT holders must complete a manual migration

The transition to PoL Next will not happen automatically.

The Berachain Foundation has confirmed that users holding BGT or BGT liquid staking tokens must manually migrate their assets to sWBERA using the migration tools being introduced through the portfolio section of the Berachain Hub.

To make the process easier, the foundation is rolling out dedicated migration support within the Hub interface.

However, users are still responsible for initiating the conversion themselves.

This manual approach means wallet holders should complete the migration using the official tools once they become available. Assets will not be converted without user action.

The migration requirement is one of the most important operational changes accompanying the hard fork, particularly for participants who have been earning rewards through the existing Proof-of-Liquidity system.

New reward model targets higher staking returns

Beyond simplifying the network's token economy, the PoL Next upgrade also introduces changes to staking rewards.

According to the Berachain Foundation, annual percentage rates (APRs) are expected to fluctuate during the initial period following the hard fork as the new incentive model stabilizes.

Despite that short-term variability, the foundation estimates that APRs could increase by as much as 3× under the redesigned system.

No fixed APR has been guaranteed, and actual returns will depend on network participation and staking conditions after the upgrade.

The projected increase reflects the expected impact of consolidating incentives around sWBERA rather than distributing rewards through the previous BGT-based model.

The new reward structure is designed to direct emissions toward staked BERA while supporting long-term participation across the network.

A new chapter for the Berachain ecosystem

The PoL Next hard fork represents a structural shift for Berachain rather than a routine network update.

By retiring the central role of BGT and moving incentives toward sWBERA, the network is simplifying its economic model while changing how users interact with staking and rewards.

Existing participants will need to complete the required migration to continue taking part in the updated system.

With the hard fork taking effect on July 8 at 16:00 UTC, the rollout begins a new phase for the blockchain as it transitions away from its original three-token framework and adopts an ecosystem built around BERA and its new staking model.