Berachain is preparing a challenging fork that will replace the two-token incentive model with a model focused on the main BERA token.

The challenging fork scheduled for Wednesday at 16:00 UTC will end the issuance of Bera Governance Token (BGT) and transfer the network’s incentive system to Wrapped BERA (WBERA), the Berachain Foundation announced in Tuesday’s post

After the update, the network will distribute fixed amounts of WBER instead of BGT as block rewards. The change replaces Berachain’s previous dual token model, which split network functions between the tradable BERA token and the non-tradable BGT governance token.

Berachain said annual percentage rates (APRs) could triple after the escalate, although he warned that yields could fluctuate in the first few days.

The Berachain Foundation aims for a “simpler” token economy

The Berachain Foundation said the update replaces the BGT-based remuneration system with one focused on sWBERA, a posed version of WBERA that it described as simpler and more sustainable.

Before the update, users looking for higher returns had to navigate multiple reward mechanisms and liquid staking tokens associated with BGT.

The transition will take place in two stages. WBERA emissions started on Tuesday, while Wednesday’s challenging fork will stop BGT emissions.

Reward vaults and liquid staking incentives associated with BGT will be phased out in the days following the challenging fork.

Related: The Solana Foundation launches a protocol-level governance framework

BERA declines 7% ahead of challenging fork as network activity remains muted

According to the data, the BERA token fell 7% in the 24 hours to 8:34 UTC, extending its decline over the past year to 88%. CoinMarketCap.

BERA/USD, 1-year chart. Source: CoinMarketCap

Berachain’s total value locked (TVL) decreased by $1.79 million, or 3%, over the same period. According to TVL, the network ranks 37th with $56 million locked DefiLlama. Over the last 24 hours, Berachain generated $41 in chain fees and $3,359 in app revenue while distributing $14,816 in incentive tokens.

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