Pseudonymous Berachain Founders Raise $100 Million to Accelerate Layer-1 Innovation

Pseudonymous founders with bear-themed names have raised $100 million for Berachain, a layer-1 blockchain built with Cosmos tech. The Series B funding round was co-led by Brevan Howard Digital and Framework Ventures, with participation from Polychain Capital, Samsung Next, Hack VC, and Hashkey Capital. Berachain aims to align incentives for security and liquidity at the network level using the proof-of-liquidity consensus mechanism and plans to use the funds to strengthen its initiatives and engineering resources, as well as expand its global presence.

Pseudonymous Founders of Berachain Raise $100 Million to Enhance Layer-1 Blockchain

In a remarkable announcement on Friday, a group of pseudonymous founders known as Smokey the Bear, Homme Bera, and Dev Bear have secured a substantial $100 million in Series B funding for their layer-1 blockchain, Berachain. This funding round was co-led by Brevan Howard Digital, a renowned investment management platform, and Framework Ventures, a crypto-native venture capital firm. Other prominent backers include Polychain Capital, Samsung Next, Hack VC, and Hashkey Capital. Notably, angel investors such as Sandeep Nailwal, co-founder of Polygon, and Yat Siu, Chairman of Animoca Brands, have also expressed their support for Berachain.

The funding was structured through a SAFT (Simple Agreement for Future Tokens) agreement, indicating the investors' confidence in Berachain's future prospects and the value it brings to the blockchain ecosystem. This development comes shortly after Monad Labs raised an impressive $225 million to build a layer-1 chain to compete with industry giants like Ethereum and Solana.

Berachain's founders have expressed their enthusiasm for the funding, viewing it as a testament to their innovative approach to blockchain development. "This raise serves as a significant validation of our user-centric philosophy and our commitment to empowering the communities that contribute to the growth of our network," said Smokey the Bera in a press release.

The proceeds from this funding will enable Berachain to bolster its "economic growth initiatives and engineering resources." Additionally, the company plans to expand its global presence into key regions such as Hong Kong, Singapore, Southeast Asia, Latin America, and Africa.

Deciphering Berachain: A Layer-1 Blockchain with a Unique Consensus Mechanism

Berachain stands out as an EVM-compatible layer-1 blockchain that seeks to align incentives for security and liquidity at the network level. Built upon the Cosmos SDK, it employs a novel consensus mechanism known as proof-of-liquidity. This mechanism builds upon the foundation of proof-of-stake but aims to address its limitations.

Users can participate in the proof-of-liquidity consensus by providing liquidity to pools using Berachain's native BERA tokens. In return, they earn Bera Governance Tokens (BGT). These BGT can be delegated to validators, who produce blocks based on the amount of BGT they hold. Validators then vote on the distribution of liquidity rewards among pools and distribute block rewards (known as bribes) to delegators.

Berachain believes that this model enhances security by increasing liquidity, decentralizes inflation, and incentivizes all participants to contribute to the ecosystem's growth.

"The Berachain team has effectively created a blockchain that empowers users to directly influence the development of specific applications and industries on their chain," said Vance Spencer, co-founder of Framework Ventures. "This represents an unprecedented model for ecosystem growth."

Spencer further noted the exceptional energy within the Berachain community, expressing excitement about their future achievements. "I am eager to witness their impact as they gain the ability to directly shape the trajectory of their own chain," he added.

Bit Bears Genesis: A Journey from NFTs to Blockchain

Berachain originated as an NFT project called Bit Bears, conceived by the pseudonymous founders as a playful endeavor. However, its overwhelming success fostered a "massive cult community," inspiring the founders to envision Berachain's current form.

Two months ago, Berachain unveiled its testnet, which, according to the press release, became "the most utilized testnet in blockchain history." During its first 48 hours, over 300,000 users participated, generating more than 1 million transactions. Berachain anticipates the launch of its mainnet within this quarter.

Conclusion

Berachain has garnered significant attention and support from established investors and the wider blockchain community. Its unique proof-of-liquidity consensus mechanism and user-centric approach position it as a promising player in the rapidly evolving layer-1 blockchain landscape. As Berachain continues to expand its global presence and empower its community, it will be intriguing to follow its contributions to the blockchain industry and the potential it unlocks for decentralized applications and ecosystems.