Incentive Marketplace V2
The current PoL marketplace operates at 0% fees with no rate ceiling. This enables incentive recycling, allows irrational overbidding that prices out legitimate actors, and provides no way to distinguish valuable spend from extractive behavior.
The new structure introduces four changes: USD-based pricing, a rate ceiling, an efficiency-based fee, and a tier system with loyalty benefits.
USD Based Pricing
Incentives are now priced in USD worth of tokens per $1 worth of BGT.
Purpose:
Removes BERA volatility from the equation
Allows protocols to accurately predict returns before posting incentives
Creates consistent pricing regardless of market conditions
BGT is priced via the BGT Index, which tracks the market value of BGT LSTs in real time.
Rate Ceiling
A maximum incentive rate of $0.90 per $1 of BGT.
Purpose:
Prevents irrational actors from overbidding into negative returns
Guarantees positive ROI on every protocol interaction
Creates space for legitimate actors who were previously priced out
For context, the historical average incentive rate has been around $0.60 so the system was inefficient enough that BGT never approached parity.
Base Fee Formula
The base efficiency fee uses a convex curve to reward protocols that bid closer to the ceiling rate.
How it works:
At ceiling rate ($0.90): fee = 5% (minimum)
At floor rate ($0.50): fee = 20% (maximum)
The exponent (1.1) creates slight convexity so fees decrease faster as bids approach the ceiling
The effect:
Protocols bidding near the ceiling pay marginally less than a linear curve would suggest, while protocols bidding at low rates pay marginally more. This creates an additional incentive to bid efficiently without punishing excessively at moderate rates.
$0.90
5.0%
5.0%
$0.80
8.75%
8.3%
$0.70
12.5%
12.0%
$0.60
16.25%
15.9%
$0.50
20.0%
20.0%
Fee Modifiers
Two modifiers adjust the base fee:
Duration Modifier
Reduces fees for longer-duration incentives.
7+
0%
6
1%
5
2%
4
3%
3
4%
Rationale:
Longer commitments create predictable validator rewards
Demonstrates genuine ecosystem commitment
Reduces short-term extraction incentives
Native Modifier
Non-native protocols pay a 1.33x multiplier on their total fee (base + duration).
Rationale:
Rewards protocols bringing genuine activity to Berachain
Differentiates from external protocols bribing without deeper integration
Incentivizes migration to native deployment for full benefits
Fee Calculation
Native protocols: Total Fee = Base Efficiency Fee + Duration Modifier
Non-native protocols: Total Fee = (Base Efficiency Fee + Duration Modifier) × 1.33
Example 1: Native protocol, ceiling rate, 7-day duration
Base fee: 5%
Duration: +0%
Total: 5%
Example 2: Non-native protocol, $0.70 rate, 4-day duration
Base fee: 12%
Duration: +3%
Subtotal: 15%
Native multiplier: × 1.33
Total: 19.95%
Incentives Calculator
You can use the following calculator to get a feel of how PoL incentives will work with the new model:
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