How PoL Works on BeraChain ⚙️

Proof-of-Liquidity (PoL) on BeraChain operates by incentivizing liquidity providers to deposit their assets into liquidity pools. These assets are used for decentralized finance (DeFi) activities like trading, which strengthens the network's liquidity and security. Unlike traditional Proof-of-Stake (PoS) systems, where staking tokens is the primary mechanism, PoL emphasizes liquidity provision. Validators and participants who contribute liquidity are rewarded with governance tokens and additional rewards, ensuring a robust and liquid ecosystem on BeraChain.