TL;DR:
- Berachain executes an upgrade that halts emissions of the non-transferable governance token BGT.
- The new system distributes fixed amounts of Wrapped BERA (WBERA) as block rewards.
- The network’s total value locked (TVL) stands at $56 million following a recent $1.79 million drop.
The Berachain Hard Fork set in motion the network’s technological transition to modify its economic incentive model. According to information from the Berachain Foundation, the upgrade takes place on Wednesday at 4:00 pm UTC, aiming to replace its dual-token structure with a system focused on its core asset.
1/ PoL Next is now live on Berachain mainnet. Today's contract upgrades marks the first step in the full transition away from the legacy BGT model and toward a simpler, more sustainable incentive system built around sWBERA. pic.twitter.com/yXciR7wZ88
— Berachain Foundation 🐻⛓ (@berachain) July 7, 2026
The Berachain Foundation posted on its X account that this Hard Fork definitively stops the emission of the Bera Governance Token (BGT). Following the implementation of the change, the network will distribute fixed amounts of Wrapped BERA (WBERA) instead of BGT as rewards for each block generated.
This modification replaces Berachain’s previous model, which divided the chain’s operational functions between the transferable BERA token and the non-transferable governance asset BGT.
According to the Berachain Foundation’s estimates, annual percentage rates (APR) could potentially triple after the upgrade. However, the organization warned that yields will experience natural fluctuations during the first few days following the technical implementation.
Transition toward a single-token economy
The Berachain Foundation indicated that the upgrade replaces the BGT-based system with a design centered on sWBERA, the staked version of WBERA. The entity describes this structure as a simpler and more sustainable model for the network’s long-term development.
Prior to the change, users seeking to optimize their yields were forced to interact with multiple reward mechanisms and liquid staking tokens directly linked to BGT.
The technical migration process is executed in two distinct stages. WBERA emissions formally began on Tuesday, while this Wednesday’s Hard Fork completely halts BGT emissions.
Reward pools and liquid staking incentives associated with BGT will be phased out in the days following the fork.
As of the close of the last 24 hours prior to the Hard Fork, the BERA token recorded a 7% drop at 8:34 am UTC. With this move, the asset extends its cumulative decline to 88% over the past year, according to market data provided by CoinMarketCap.
During that same 24-hour period, the total value locked (TVL) across Berachain protocols decreased by 3%, representing a reduction of $1.79 million. With a retained capital of $56 million, the network currently ranks 37th in the decentralized ecosystem by TVL volume.
The completion of the BGT vault disconnection will mark the final closure of this technical transition in the ecosystem.
