$BERA serves as the native gas and staking token of Berachain, the first blockchain powered by Proof-of-Liquidity.
The $BERA token serves two main purposes on the Berachain network.
Transaction Fees
Paying for transactions on the Berachain network ($BERA is also referred to as the "gas token" for this reason). Tokens utilized for transaction fees are burned, removing them from the circulating supply.
Validator Staking
Validators stake $BERA to operate a validator. Within the active set, the more $BERA a validator has staked, the more frequently they are chosen to propose blocks. The ratio of a validator's $BERA to the total stake is linear with their chances of block production. The economic value of all $BERA tokens staked forms the economic security of the chain, with $BGT dynamics controlling its inflation.