Incentive Marketplace

How businesses and protocols bid for validator-allocated WBERA emissions.

Proof of Liquidity lets businesses and protocols bid for validator reward allocation by attaching incentive tokens to whitelisted Reward Vaults. Validators allocate $WBERA emissions to those vaults and earn incentive commission when their allocation captures funded incentives.

This page covers the market-based path for routing emissions through validator allocation. Dedicated Emission Streams are a separate routing path for selected businesses that receive predictable emissions outside the standard validator-allocation market.

How incentives work

1. Validators stake $BERA to enter the active set; the more BERA staked, the greater probability to produce a block
2. When validators produce blocks, BeraChef applies their reward allocation to route $WBERA to whitelisted vaults.
3. Businesses and protocols fund Reward Vault incentives to attract validator allocation..
4. Incentives split into two paths: validator commission and incentives redirected to $sWBERA. Validator commission is paid to the validator operator. Redirected incentives are settled through the Incentive Auction, converted into $BERA / $WBERA yield, and accrued into $sWBERA.

Incentive distribution roles

Participant	Role
Protocol	Funds incentive tokens to attract validator reward allocation.
Validator	Allocates Reward Vault emission and earns commission on incentive tokens.
BERA staker	Stakes $BERA with validators, increasing block-production probability.
$sWBERA staker	Earns WBERA yield from the Incentive Auction through $sWBERA.
LST staker	Earns WBERA yield when their LST has a registered staker vault.
Vault staker	Stakes receipt tokens and earns allocated WBERA emissions from the vault.

Incentive token lifecycle

Whitelisting

Reward Vaults can whitelist up to two incentive tokens through governance.

Token managers

Each whitelisted incentive token has a token manager that funds incentives and manages rates under governance constraints.

Incentive rate

Incentives use an exchange rate per unit of allocated emission:

incentiveTokens = emissionAllocatedToVault * incentiveRate

Rates can increase when the token manager deposits more inventory. Decreasing rates is restricted until existing inventory is exhausted.

Commission and payouts

Validator commission is capped at 20%. Reward Vault incentive processing sends the validator commission to the validator operator and sends the remaining incentive tokens to BGTIncentiveFeeCollector.

Incentive fee settlement

The redirected incentive share collects in BGTIncentiveFeeCollector, the shared settlement path for Reward Vault incentives. Incentive tokens accumulate in the collector, and WBERA paid into settlement becomes yield for $sWBERA stakers and registered LST stakers.

See Deployed contract addresses for the current BGTIncentiveFeeCollector address.

Settlement behavior

Settlement is a fixed-price exchange against the collector: a buyer pays WBERA into the incentive collector, receives the selected incentive tokens held by the collector, and the paid WBERA is split pro-rata (by WBERA-denominated total assets) between the $sWBERA staking vault and registered LSTStakerVaults. Registered LST vaults receive yield through their LST adapter (receiveRewards).

LST integration: issuers deploy an LSTStakerVault system via LSTStakerVaultFactory, then register the vault and adapter on the collector’s LST registry to join the auction split. See LST Integration for the full integrator workflow.

Incentive redirection

After validator commission, redirected incentives move through the auction path:

• Validator commission: paid directly to the validator operator.
• Incentive Auction: redirected incentive tokens are settled for $WBERA.
• Yield receivers: auction WBERA becomes yield for $sWBERA stakers and registered LST stakers.

See $sWBERA Token for the staking-vault side of this flow.