Nomad Bera 🐻⛓️

Chef @VaseFinance | @BoogaBeras

[Nomad Bera 🐻⛓️ @Nomad_]

https://t.co/JwdrMFU0hF

[Nomad Bera 🐻⛓️ @Nomad_]

@SmokeyTheBera Yup excited to see that. I know the announcement said there's more details on ERA coming but wanted to cover everything here objectively.

Seeing all this play out on testnet is gonna be interesting

[Nomad Bera 🐻⛓️ @Nomad_]

https://t.co/JwdrMFU0hF

[Miggs3377🐻⛓ @ruwaiting4]

Last night we did the very first Bera Breakdown special guest segment! The Bera, the myth, the legend @nomad_ joined me as we discussed all things POL and the potential of the future.

This episode was a follow up episode to @The_HoneyCast episode he did earlier this week. We got some additional clarity on the topics and also got to see visual tools with pretty pictures for Beras that can't read!

See below for the Breakdown of what was reviewed:

0:00 - 4:00 Intro 🎶
4:01 - 5:36 Bera Breakdown contest winner
5:37 - 6:10 Gracias for taking the time
6:11 - 8:30 Why are we here?
8:31 - 10:37 Why bother writing an article?

*** 10:38 - 22:22 Inefficient Bribes/BGT Index***

*** 22:23 - 47:30 Incentive Marketplace/Guaranteed rewards showcased with pretty pictures***

*** 47:31 - 1:24:20 Introducing fee tiers also with pretty pictures. Berachain has to eat too right?***

***1:24:21 - 1:50:43 Performance based inflation.***

***1:50:44 - 1:58:05 Cross chain? Should we open up and play with others?***

1:58:06 - 2:07:50 Why is this even important? We have the ability to be heard here on @berachain !!

2:07:51 - 2:09:55 👋🎶

Dashboards for the stuff we discussed are actively being created for us, the community, to play with by Nomad 👀. Coming Thoon!

Jester briefly rugged me at the halfway mark for 2 min. He is always watching... Pardon the interruption. See you all in the next stream!

In case you missed it:
https://t.co/wkgTCX3xz0

BeraBreakdown on Spotify:
https://t.co/0isInhm7of

BeraBreakdown on Apple: Damn Jester is preventing... should be thoon

[Nomad Bera 🐻⛓️ @Nomad_]

@berastotle Just left my comment. Also saw that you were understating the inflation post proposal slightly so I clarified it.

Its gonna be around 5.12%

[Nomad Bera 🐻⛓️ @Nomad_]

https://t.co/UVczBh5N8t

[Nomad Bera 🐻⛓️ @Nomad_]

@berastotle Yeah thats why I want more feedback to kind of group up an alternative

[Nomad Bera 🐻⛓️ @Nomad_]

@berastotle Yeah I'm def gonna write something there. Just asked some people for feedback before I go in

[Nomad Bera 🐻⛓️ @Nomad_]

@berastotle I'm in support of an inflation cut, but only if there's guidance of some sort of adaptive inflation model that could pull it back up in the future.

Inflation cuts are permanent (people will never vote to pull it up again) so I wouldn't want to see that.

[Nomad Bera 🐻⛓️ @Nomad_]

Agree on those points and I did try to reduce complexity, but haven't been able to find simple fixes to a lot of the issues I see so it ended up as a long thing again.

I did propose some simple stuff like the BGT Index and simply pricing incentives with USD, which I think would go a long way in helping PoL.

The goal overall was to explore alternative mechanics and potentially have some of them stick.

Order of priorities makes sense. I believe what I proposed directly touches on most of that, but I admit its complex. Hope the diff perspective helps iterate on the current system

[Nomad Bera 🐻⛓️ @Nomad_]

Thats true so a lot of what I shared here aims to bring that premium back.

The whole proposal aligns Berachain and LST providers in increasing the premium to create better performance for both the chain and the protocol so they are in sync.

I also tried to make bribes more compelling. Instead of bribing and hoping for the best, everyone knows exactly what they get from the start, and its always positive. If enough people are competing for what is essentially free money, you can definitely push clearing rates higher, and thats also why I want to reduce friction and invite other ecos to bid.

If average bribe rate creeps up, yield increases overall, and it might make BERA/BGT more attractive, without any additional dilution since that yield comes from bribes.

I think these value leaks in the current model prevent the premium from stabilizing/growing

[Nomad Bera 🐻⛓️ @Nomad_]

Yeah here's how I'm thinking about it.

The price ceiling would cap the rates at $0.90 per $1 of BGT, but with the initial fee it ends up being $0.95 per $1 of BGT without any tiers.

We can use the BGT Index and apply the 3% premium, so we effectively have $1.03 of BGT.

The protocol receives the $1, paying $0.95, and the $0.03 is not fully used.

If premium were to expand, which is in Berachain's interest now, then that residual can grow as well.

The end state of that BGT reflected on Berachain's valuation is 1 BERA, so the premium boosted the system, but ends up vanishing once BGT is realized.

I agree its strange accounting, but from the end state of those emissions it can make sense.

[Nomad Bera 🐻⛓️ @Nomad_]

Expanding Berachain's TAM helps pay for BGT emissions, driving BGT price up, and helping cover inflation.

Right now there's not enough money flowing in Bera to cover all inflation, so emissions are being wasted. By promoting competition you help push the system to a higher clearing rate and since native protocols have an economical advantage, in a long term horizon they still receive the majority of the benefit

[Nomad Bera 🐻⛓️ @Nomad_]

Berachain's average incentive rate is around 60%, so BGT is being sold at a heavy discount. Partially because the incentive market is tough to manage correctly, so it can end up in losses.

The ceiling rate guarantees positive ROI when engaging, and the other elements help control how much benefit is provided

[Nomad Bera 🐻⛓️ @Nomad_]

@fungiblehuman When you set a rate for incentives, you define the rate of Tokens per BGT, but this BGT is just priced as BERA.

LSTs like iBGT have an additional premium which is not priced in the mechanism, so protocols gain extra performance without this being considered in the system.

[Nomad Bera 🐻⛓️ @Nomad_]

Its a difference in concept. That "fee" is more like a redistribution of yield from 100% to BGT Boosters into 1/3 to BERA stakers, and 2/3 to BGT boosters.

Its not "revenue" for Berachain cause they don't keep any of it. Token holders control emissions, they sell it through PoL, and receive the incentives in return so thats why its classified as Token Holder revenue and Bera displays almost 0 fees on Defi Llama.

The fee I refer to would be implemented before this process, and the chain gets to keep it for buybacks or reinvestment.

So Berachain takes a cut, then the remainder is split 1/3 to BERA and 2/3 to BGT

[The HoneyCast 🐻 ⛓ @The_HoneyCast]

Wot DAT?
Wen DAT?
Moon DAT?

Seeing a lot of opinions about the $BERA DAT 👀

THC + the people’s champ Fent! (via @Bullas_ ) will try to make sense of it all.
Joined by @nomad_ from @VaseFinance as our resident expert to break down what this means for @berachain🐻⛓️
🗓️ Jan 2

⏰ 6pm EST / 11pm UTC 👇

[Kodiak @KodiakFi]

Let's chat $KDK

Join us on X spaces on December 19th, 10am EST (3pm UTC).

https://t.co/uKp9P82JhZ

[Berachain Foundation 🐻⛓ @berachain]

The Beras Are Back In Town ❄️🍯

Join @The_HoneyCast and @nomad_ as they speak with Kodiak founders @0xbeartic and @BeraRodman to discover why $KDK will unlock a merry Beramas.

December 19th, at 10AM EST.

https://t.co/Ow5PHxvVET

[Booga Bullas @BoogaBullas]

Mint is Live 🔥

Stage 1 has begun!

Lets Fckn BOOOOOOOOOOOOOOGA!

https://t.co/YBOwFTGYpt

[Booga Bullas @BoogaBullas]

A deflationary NFT collection by @BoogaBeras x @TheBullas_

Pure leveraged BERA exposure with no liquidations.

Perpetual treasury growth through fees and buybacks.

0 team allocation, 0 mint fees, 100% of mint proceeds sent to treasury.