Pseudonymous founders with bear-themed names have raised $100 million in funding for Berachain, a layer-1 blockchain built on Cosmos technology.
The Series B funding round, announced on Friday, was co-led by investment management platform Brevan Howard Digital and crypto-native VC firm Framework Ventures. Additional backers include Polychain Capital, Samsung Next, Hack VC, Hashkey Capital, and angel investors such as Polygon co-founder Sandeep Nailwal and Animoca Brands chairman Yat Siu.
Investors have signed a SAFT contract to exchange their current funds for future tokens. The move comes days after Monad Labs announced it had raised $225 million on its own to build a layer-1 chain to compete with giants like Ethereum and Solana.
“This raise is an important validation of our approach to building a blockchain that is built on feedback from real users and developers, and delivering value to the groups that are actually contributing to the growth of the network. We believe there is,” said Smokey the Bella, co-founder of Bella Chain. In a press release.
VeraChain will use the $100 million raised to strengthen its “economic growth initiatives and engineering resources” and expand its global presence into Hong Kong, Singapore, Southeast Asia, Latin America and Africa.
Deep capital, expansion plans, and trust from big investors — but what is Berachain?
What is Vera Chain?
Establishment By Smokey the Bear, Om Bella, Dev Bear, E.V.M.-Compatible Layer 1 Blockchain Berachain aims to align security and liquidity incentives at the network level.
Layer 1 chains built on top of the Cosmos SDK use a proof-of-liquidity consensus mechanism. This model builds on what Proof of Stake created and seeks to address its limitations.
Users earn Bera Governance Token (BGT) by providing liquidity to the pool using the network’s native BERA token. When you delegate these tokens to a validator, the validator will generate blocks based on the amount of her BGT delegated. The validator then votes on her future BGT inflation across the liquidity pool and distributes the block reward (called a bribe) to the delegator.
Vera Chain says that this model is “Strengthen security by increasing liquidity” decentralizes inflation and aligns all parties involved in the ecosystem.
“The Verachain team has essentially built a blockchain that allows users to play a direct role in incentivizing specific apps and even industries to be built on the chain. It’s a fascinating model for ecosystem growth that we’ve never seen before,” said Vance Spencer.co-founder of framework venturessaid in the funding announcement.
“The Verachain community is one of the most vibrant communities I have ever seen in crypto,” Spencer continued. chain. “
This project was originally an NFT project called . bitbears, according to the Vera Chain website, was started simply for a little fun. However, it was a huge success and formed a “large cult community”. It was then that the founders saw his vision for what Berachain is today.
Two months ago, the Berachain testnet was launched. According to the press release, this is “the most utilized testnet in blockchain history,” with over 300,000 users and 1 million transactions processed in its first 48 hours. . Berachain plans to launch its mainnet sometime this quarter.
Edited by Andrew Hayward
