$LBGT
Liquid Bera Governance Token
Central to BearPaw's protocol is the tokenization of the Governance and Staking token, BGT, into a tradable asset known as $LBGT (Liquid BGT). This tokenization mechanism enables users to actively participate in network governance and staking activities while benefiting from the liquidity and flexibility afforded by $LBGT trading on various exchanges.
Interactions and uses
Transferable: $LBGT can be transfered and traded on various exchanges, providing liquidity and flexibility to users and liquidity providers.
Delegation: Users will have their $LBGT delegated to validators within the BeraChain Network. This delegation structure is decided by $PAW holders, and $LBGT holders earn all block rewards generated by the underlying BGT.
Rewards: $LBGT holders receive block rewards given by validators for their validation work.
Tokenization: Liquidity Providers can tokenize their emissions into $LBGT, contributing to the network's liquidity. This tokenized $LBGT is then traded on exchanges and integrated with various protocols.
Governance Influence: $LBGT holders hold the authority to create proposals and vote within the BeraChain governance module, shaping the network's development and decision-making processes.
Economic Model
$LBGT is always valued above 1 BERA because BGT, which can be converted into $LBGT, can be burned to redeem 1 BERA. This burn mechanism establishes a floor price for $LBGT, ensuring it maintains a minimum value of 1 BERA. $LBGT serves all the functions of BGT, such as governance participation, while providing added liquidity and flexibility through trading on various exchanges. The guaranteed value above 1 BERA, combined with its liquidity benefits, makes $LBGT a more attractive option compared to holding BGT directly.
Supply and Value Proposal
Supply: Dynamic, based on the amount of BGT held by $LBGT contract on a 1:1 ratio.
Utility: Governance participation and trading.
Value Floor: 1 BERA, due to the burnable nature of BGT into BERA on a 1:1 ratio.
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