Fee Tiers and BERA Points

A points based system that rewards protocols that show alignment and productive economic activity. Protocols that consistently contribute gain access to better fee rates over time.


Core Mechanics

Points Accumulation

Protocols earn points through three mechanisms:

Activity
Points per Day

BERA Staked

1 point per 500 BERA

BGT Boosted

1 point per 50 BGT

Incentives Spent

1 point per 0.001% daily share

BERA staking and BGT boosting accrue points based purely on capital commitment. Incentives accrue points based on daily share of total market volume.


Vault Category Multipliers

At deployment, Reward Vaults are classified by the guardians based on economic role and behavior. Each category applies a multiplier to points earned from incentives directed to that vault.

Vault Category
Protocol Behavior Profile
Points Multiplier

Infrastructure / Core Liquidity

External capital inflows, base assets, core primitives

1.0×

Productive DeFi

Fee generating activity with organic usage and real demand

0.8×

Growth / Bootstrapping

Early stage protocols building toward sustainability

0.6×

Incentive Heavy / Circular

Emission driven models with recycling tendencies

0.4×

Farming

Primarily extractive or self feeding loops

0.1×

Protocols bringing genuine value earn points at higher rates while those optimizing for extraction progress slower.


Point Calculation for PoL Incentives

Points=Base Point Emission×Vault Category Multiplier×Incentives Directed\text{Points} = \text{Base Point Emission} \times \text{Vault Category Multiplier} \times \text{Incentives Directed}

This ensures:

  • Capital commitment remains the dominant factor

  • Productive protocols scale more efficiently

  • Protocols cannot shortcut tier progression through spend alone


Monthly Evaluation

Tiers are evaluated monthly. Points reset on the first of each month and only points earned during the active month determine tier status.

Protocols that do not meet their current tier's threshold are automatically downgraded on the next period

This prevents permanent advantages and ensures efficiency reflects ongoing contribution rather than purely historical activity.

Historic point balances are still recorded and displayed even when not applicable towards the current month


Tier Thresholds (Monthly)

Tier
Points
BERA Stake
BGT Boost
Incentives Share
Cashback

Tier 1

3,000

50,000

5,000

0.10%

1%

Tier 2

15,000

250,000

25,000

0.50%

2%

Tier 3*

30,000

500,000

50,000

1.00%

3%

Tier 4*

60,000

1,000,000

100,000

2.00%

4%

Tier 5*

90,000

1,500,000

150,000

3.00%

5%

*Tiers 3-5 require at least 10% of points from 2 or more categories


Priority Queue

When multiple protocols bid at the ceiling rate, a priority queue determines allocation order through micro adjusted rates visible only to validators.

Trigger: 2+ protocols bid at ceiling rate ($0.90)

Mechanism: System automatically assigns micro-adjusted rates at or above $0.90

Increment: $0.001 (0.1 cents)

Ordering Rules:

  1. Primary: Tier (Tier 5 > Tier 4 > Tier 3 > Tier 2 > Tier 1)

  2. Secondary: FCFS within same tier

Example Queue:

All protocols bid $0.90. System adjusts upward for priority:

Protocol
Tier
Position
Adjusted Rate

Protocol A

5

1st in tier

$0.9040

Protocol B

5

2nd in tier

$0.9030

Protocol C

4

$0.9020

Protocol D

3

$0.9010

Protocol E

2

$0.9000

  • Protocol view: All protocols see and pay $0.90

  • Validator view: Validators see adjusted rates and should fill the highest first

The lowest priority protocol stays at exactly $0.90 and everyone above receives incremental bumps upward.


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