LODE 🪨⛏️

The next phase of Berachain will upgrade the chain to reward value itself via new rewards vault standards. They’re a small departure from the existing standards. Rather than deposit a receipt token issued by a DeFi action (eg 4626, LP), ERC20 is issued by the protocol itself to reward a user action. A small number of teams have already built versions of this - using RVs and dummy ERC20 tokens to allow them to stream rewards to users creating fees via things like perp DEX volume. But that’s just the surface - having a general standard for this means that applications can target not just actions that have receipt tokens issued already, but ANYTHING. Think of it as moving from rewarding things that already have receipts to creating receipts to reward things you find valuable. Vaults in prod should also be much easier to manage. Still work to do on the Incentive UX, but this way vaults will be able to accumulate BGT into the rewards vault, then publish a merkle on chain with the user rewards that allows them to really specifically know exactly how much they’re paying out, and to who. Hoping to have it live soon, and already a few really cool use cases we’re targeting on it for initial case studies.