Flywheel Effect Model
Our innovative economic model creates a sustainable ecosystem through continuous value creation
Beraroot's Flywheel Effect Model
The Beraroot Flywheel Model represents a self-reinforcing economic loop driven by the $BLUEBERA token. This model is designed to create aligned incentives across validators, liquidity providers, Layer2 users, and the broader community, ensuring long-term sustainability and decentralized participation.
1. Users stake $BLUEBERA to Beraroot Validators
Users initiate the flywheel by staking $BLUEBERA with Beraroot Validators. These validators participate in consensus and may also restake $stBLUEBERA on Berachain, increasing security and capital efficiency.
2. Beraroot Validators contribute to the protocol economy
Validators can redirect staked assets to the Republic Validator, which acts as the economic controller. It allocates funds according to governance rules and system parameters (e.g., $BREA, BCV), powering various subsystems within the ecosystem.
3. The Republic Validator manages distribution and emissions
The Republic Validator performs the following functions: Allocates liquidity to BEX pools ($stBLUEBERA / $Honey), Issues $BGT emissions to reward governance participants, Collects BVC fees, Accepts bribes in $BLUEBERA from the community to influence governance and validator delegation.
4. The community engages through incentives and governance
Community members receive $BGT as incentives and may offer $BLUEBERA as bribes to participate in governance decisions, vote delegation, or validator selection. This ensures active, decentralized governance.
5. BEX pools provide liquidity depth and market activity
Liquidity providers supply $stBLUEBERA and $Honey to BEX, creating deep liquidity pools that support healthy on-chain markets within the Beraroot ecosystem.
6. Layer2 users interact with PoL smart contracts
Layer2 users trigger smart contracts that utilize protocol-owned $BLUEBERA liquidity. These interactions cycle tokens back into the validator layer, completing the loop.
✅ Summary
The flywheel creates a powerful feedback loop:
This model ensures that all ecosystem participants—users, validators, liquidity providers, and developers—contribute to and benefit from the growth of Beraroot.