Bedrock DAOWhy PoSL exists
Proof of Staking Liquidity is described as a way to encourage productive use of staking-related assets while allowing the community to participate in governance. It links activity in the liquid restaking ecosystem to token incentives and longer-term voting participation.
The two-token relationship
BR can be used to participate in governance after staking into veBR. veBR then supports voting over governance and incentive choices. These two mechanisms should not be confused with the economics of the underlying uniToken or restaking position.
Capital efficiency and trade-offs
Using staked or restaked assets across protocols can introduce smart-contract, liquidity, counterparty and market risks. An incentive mechanism does not remove those risks. Participants should read the terms of any separate DeFi protocol that accepts a Bedrock asset.
Governance feedback loop
The design aims to connect participation, BR rewards, BR staking and veBR governance influence. Gauge voting can inform where further incentives are directed, creating a feedback system controlled by governance decisions rather than a fixed, unchanging distribution.
Frequently asked questions
What is Proof of Staking Liquidity?
PoSL is described as a model that connects staking-based governance and incentive coordination with the wider liquid restaking ecosystem.
How does PoSL relate to BR and veBR?
The documentation links BR to the incentive and governance layer and veBR to governance participation created through eligible staking.