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The pseudonymous founders with the bear-themed name have raised $100 million in funding for Berachain, a layer 1 blockchain built on Cosmos technology.
The Series B funding round, announced Friday, was co-led by investment management platform Brevan Howard Digital and cryptocurrency-based VC firm Framework Ventures. Additional backers include Polychain Capital, Samsung Next, Hack VC, and Hashkey Capital, as well as angel investors such as Polygon co-founder Sandeep Nailwal and Animoca Brands Chairman Yat Siu.
Investors signed a SAFT contract to exchange current funds for future tokens. The move comes just days after Monad Labs announced its own $225 million in funding to build a layer-1 chain for rival giants like Ethereum and Solana.
“We see this raise as a major validation of our approach to build a blockchain built on feedback from real users and developers, and to give value to groups that actually contribute to the growth of the network,” said Berachain co-founder. Smokey the Bera said. From a press release.
Berachain plans to use the $100 million raised to strengthen its “economic growth initiatives and engineering resources,” as well as expand its global presence into Hong Kong, Singapore, Southeast Asia, Latin America and Africa.
Abundant capital, expansion plans, and the trust of large investors. But what is VeraChain?
What is VeraChain?
establish Produced by Smokey the Bear, Homme Vera, and Dev Bear EVM-Berachain, a compatible layer 1 blockchain, aims to align incentives for security and liquidity at the network level.
Layer 1 chains built on the Cosmos SDK use a Proof-of-Liquidity consensus mechanism. This model builds on what proof-of-stake has created and attempts to address its limitations.
By providing liquidity to the pool using the network’s native BERA token, users earn Bera Governance Tokens (BGT). These tokens can then be delegated to validators who will generate blocks based on the amount of BGT delegated. Validators then vote on future BGT inflation across the liquidity pool and distribute block rewards (called bribes) to delegators.
Berachain believes that this model “Strengthens security by increasing liquidity.,” decentralizes inflation and aligns all parties involved in the ecosystem.
“The Berachain team has built a blockchain that essentially allows users to play a direct role in encouraging specific apps and even industries to build on the chain. This is a compelling model for growing an ecosystem the likes of which we have never seen before.” Vance Spencer said. co-founder framework ventureThis was announced in the funding announcement.
Spencer continued, “The Berachain community is one of the most vibrant communities I’ve seen in any cryptocurrency. And I can’t wait to see what they will do once they have the ability to directly shape their own future. chain.”
This project was originally an NFT project that: beat bears, according to the Berachain website, it was started just for a bit of fun. However, it was a huge success, leading to a ‘massive cult community’. It was at this time that the founders saw their vision for what Berachain is today.
Two months ago, the Berachain testnet was launched. According to a press release, it was “the most utilized testnet in blockchain history” with over 300,000 users and 1 million transactions processed in the first 48 hours. Berachain plans to launch its mainnet this quarter.
Editor: Andrew Hayward
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