Article: Sleeping Madly in the Rain

Today, let me quickly introduce an interesting product on Berachain, @bgtmarket.

This is also a series I want to do: Berachain Ecological Tour, the first article is Puffpaw, this is the second article.

It all starts with the three Token model (BGT, BERA, HONEY) in the Bear Chain, with $BGT at the center of it all.

$BGT is the governance Token of Bear Chain, which is non-transferable + non-tradable. Users can only obtain it through LP and other methods. Users can convert BGT 1:1 to BERA, but cannot reverse the operation.

The speed at which LPs of the same scale obtain BGT depends on the validation Node, and the governance weight of the validation Node depends on the proportion of BGT delegated to them to the total BGT Circulating Supply.

In short, the validating Node has the power to determine the flow of BGT generated with the Block to which LP pool of the project, and users can delegate BGT to the validating Node that best meets their own interests and demands.

This is also why we say that the normal state of Bear Chain is the collaboration and game between projects, verification Nodes and users.

But there is also an issue here, the value brought by "user entrusting BGT" and the value that the project party is willing to pay for unit Liquidity may be unequal, which means that the original Consensus Mechanism cannot provide accurate judgments in a sufficient, effective, and real-time manner for the demand side and the supply side of BGT.

The original intention of the BGT Market is to solve this problem - by launching a dedicated BGT market, it provides an accurate judgment of the supply and demand value of BGT in real-time for both demand and supply parties, and prices it through real-time market transactions.

In fact, what BGT Market is doing is to "effectively price the implied value of BGT in the market" (the surface value of 1 BGT = 1 BERA).

P.S. The implied value of BGT depends on the bribery that the project party is willing to pay for Liquidity. At a deeper level, the implied value of BGT is actually the external manifestation of the Bear Chain ecosystem.

BGT Market is a BGT Decentralization auction market. The market auction BGT in Dutch auction form, and the initial auction price of BGT will quickly drop, and the drop speed will decrease as time goes by. Buyers can buy in when the BGT price drops to their expected psychological price and obtain control of BGT.

Here, you may wonder how BGT Market auctions BGT when BGT cannot be transferred or traded.

I think you can understand it this way: all BGT in the BGT Market is stored in one wallet. Buyers can see the BGT they purchased on the front end of the BGT Market (but the BGT is not actually in the buyer's wallet), and can operate based on their own needs, such as 'delegating BGT to a validation Node', 'canceling delegation', 'claiming BGT delegation rewards', 'selling BGT', 'converting to BERA', and other operations. Each operation is automatically executed by the BGT Market Smart Contract. In fact, the BGT has not been transferred or traded, but users have control over it.

In addition to the benefits mentioned above, personally I think BGT Market can also help new users of Bitget quickly understand the implied value of BGT on the current Node, so that they can formulate future strategies - if the implied value of BGT is high, they will be more inclined to delegate BGT to Node to obtain long-term value output; if the implied value of BGT is lower than expected, they will be more inclined to exchange BGT for BERA, mine and sell it.

From another perspective, buyers can directly sell BGT through the BGT Market, which indirectly reduces the inclination of bear chain users to convert BGT to BERA and reduces the selling pressure of BERA.

Above is my introduction to the BGT Market and the reason why I introduced it.

Finally, it is worth mentioning that the solution to BGT Market with respect to BGT Liquidity also inspired many BGT holders, that is, to allocate and flow BGT through establishing a frontend approach.