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ELI5: Proof of Liquidity (PoL)

ELI5: Proof of Liquidity (PoL)

In PoL, liquidity is king. Users who contribute liquidity receive BGT (Berachain Governance Token), which they can use to influence where future BGT rewards are directed. Validators manage these emissions by allocating rewards to specific liquidity pools or protocols, amplifying yield opportunities in areas that matter most to Berachain. This creates a feedback loop where rewards are directed where they’re needed most.