Berachain Activates "Proof of Liquidity" Reward System

Berachain launched its long-awaited Proof of Liquidity system today, marking the first phase of its onchain governance rollout. The mechanism distributes BGT, a non-transferable governance token, to 37 approved DeFi vaults tied to economic activity across the network.

Unlike typical staking models, BGT is earned by providing liquidity, and then delegated to validators to boost their influence. This links consensus directly to DeFi participation, with vaults receiving emissions refreshed every five hours and scaling over a three-day window.

Validators compete for delegated BGT to optimize rewards and shape governance outcomes, while vaults are expected to expand beyond the initial DEX pools. “The era of earning more starts today,” the team said, hinting at broader integrations ahead.

Berachain has raised $142 million in funding and amassed $3 billion in value locked through its Boyco prelaunch platform. It uses the Cosmos SDK and Tendermint consensus, but reframes staking to prioritize liquidity as the foundation of security and governance.

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Strategy Bitcoin Holdings Cross 500,000 After Stock Sale

Strategy, the company formerly known as MicroStrategy, said on Monday it now holds 506,137 BTC worth $44.2 billion after acquiring 6,911 Bitcoin last week. The firm used proceeds from its stock sale, which brought in $593 million, to fund the latest purchase at an average price of $84,500 per coin. Strategy has spent $5.3 billion on Bitcoin in the first quarter of 2025 alone.

The Tysons-based company has sold nearly 2 million shares through an equity offering program launched last October, with $3.57 billion still available for sale. It also raised $1.1 million by issuing “Strike,” a preferred stock with an 8% dividend. Founder Michael Saylor hinted at continued buying, referencing a need for “more orange dots” on Strategy’s Bitcoin chart.

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dYdX Launches Monthly Token Buybacks, Token Surges 8%

Decentralized exchange dYdX will begin using 25% of its net protocol fees to buy back and stake its DYDX token, starting March 25. The initiative, passed via community vote, marks the protocol’s first buyback program and aims to reduce token supply while securing the network. At current rates, the DEX will allocate around $4.4 million annually to these buybacks.

Under a new fee distribution model, 40% of protocol fees go to staking rewards, while 25% each are split between the MegaVault and buybacks. dYdX’s token jumped 8% to $0.71 (a $546 million fully diluted valuation) following the announcement. The platform plans to cut emissions in half this June, with all token unlocks ending by June 2026.

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Crypto Funds Add $644 Million After Five-Week Outflows

Cryptocurrency investment products saw $644 million in inflows last week, reversing five consecutive weeks of outflows, according to CoinShares on March 24. Bitcoin ETFs led the recovery, drawing $724 million, while Solana, Polygon and Chainlink products posted smaller gains. Total assets under management rose 6.3% from the March 10 low point.

Ethereum products saw the sharpest losses, with $86 million in outflows, while Sui, Polkadot, Tron and Algorand also saw net exits. Most inflows came from US investors, who added $632 million, while Switzerland and Germany added $15.9 million and $13.9 million respectively. Analysts attributed the shift in sentiment to dovish signals from Fed Chair Jerome Powell.

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Data of the Day

Standard Chartered Bank analysts said Bitcoin should be viewed more like a tech stock than digital gold due to its correlation with the Nasdaq. The March 24 report proposes replacing Tesla with Bitcoin in the “Magnificent 7” index, resulting in higher average returns and lower volatility over seven years. BTC’s correlation with gold, historically seen as a safe haven, has weakened.

The bank’s analysis found the new “Mag7B” index outperformed the original by 1% annually with 2% lower volatility. Geoff Kendrick, head of digital assets at StanChart, said Bitcoin’s performance aligns more with tech-driven growth than risk hedging. Asset managers like BlackRock and Bitwise have begun integrating BTC into traditional portfolios with recommended allocations of up to 2%.

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More Breaking News

• The US Treasury says the Tornado Cash lawsuit should be dismissed as moot after delisting it, but Coinbase argues a final court ruling is still legally required.
• Abu Dhabi’s ADGM and Chainlink have partnered to create compliant RWA tokenization frameworks and will host events on blockchain, AI, and cross-chain infrastructure.
• UK banker Lisa Gordon urges taxing crypto instead of stocks to boost local investing, arguing equities support economic growth while crypto doesn’t.
• Metaplanet has added 150 BTC to its Bitcoin treasury, raising holdings to $293 million, and named Eric Trump to its new strategic advisory board.
• Infini has filed a Hong Kong lawsuit over its $50 million stablecoin exploit, naming a developer and others, while offering a 20% bounty to the hacker.
• Sam Altman’s World Network is in talks with Visa to link stablecoin payments to its wallet and build global fintech services via on-chain cards.
• NYDIG says tokenizing US gold could benefit Bitcoin by raising awareness, even if gold tracking still relies on trust unlike decentralized crypto.
• US officials plan to return $7 million to victims of fake crypto sites after recovering the funds through a civil forfeiture settlement with a foreign bank.

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