Berachain hard fork ends dual-token era as BERA slides 7%

Key Takeaways:

Berachain's hard fork on Wednesday halts BGT emissions permanently
Reward system shifts to WBERA block rewards, potentially tripling APR
BERA fell 7% in 24 hours as TVL dropped 3% to $56 million

Berachain's BERA token fell 7% to extend its yearly decline to 88% as the network prepared for a hard fork that will replace its dual-token incentive model with a single-token system centered on WBERA.

The upgrade, scheduled for 4:00 p.m. UTC on Wednesday, will halt emissions of the Bera Governance Token (BGT) and shift block rewards to fixed amounts of Wrapped BERA (WBERA), the Berachain Foundation said in a Tuesday post on X. The change retires a dual-token structure that split functions between the transferable BERA token and the non-transferable governance token BGT.

"The new design is simpler and more sustainable," the foundation said, adding that annual percentage rates could triple after the upgrade, though yields may be volatile during the first few days as the system settles.

The transition unfolds in two stages. WBERA emissions began Tuesday, while Wednesday's hard fork will stop BGT emissions. Reward vaults and liquid staking incentives tied to BGT will be phased out in the days following the upgrade, the foundation said.

Berachain's total value locked fell $1.79 million, or 3%, over the past 24 hours to $56 million, ranking the network 37th by TVL, according to DefiLlama. Over the same period, the chain generated $41 in fees and $3,359 in application revenue while distributing $14,816 in token incentives — figures that suggest muted activity ahead of the scheduled change.

The foundation described the new system as centered on staked WBERA (sWBERA), which it said reduces the complexity users faced under the old model. Previously, participants chasing higher yields had to navigate multiple reward pathways and liquid staking mechanisms tied to BGT. By consolidating incentives around a single asset, the network aims to make it easier for liquidity to concentrate and for users to evaluate positions.

The hard fork represents a bet that simpler tokenomics can reverse Berachain's declining on-chain activity. With BERA down roughly 88% over the past year and TVL trending lower, the post-fork period will test whether the new incentive structure can attract users and capital back to the network.

This article is for informational purposes only and does not constitute investment advice.