🗳️ Delegation of BGT

In the Roots protocol, $BGT (Berachain Governance Token) plays a crucial role in securing the network and generating yield for users. The protocol automatically delegates any earned $BGT to maximize its impact and ensure optimal network security and reward generation.

How $BGT Delegation Works

Automatic Delegation Process

1. Earning $BGT:

   • Users collateralized assets may earn $BGT if whitelisted, this $BGT is managed and custodied by the Roots protocol.

2. Automatic Delegation:

   • The protocol automatically delegates the earned $BGT to validators on Berachain. This delegation process is designed to maximize the impact of $BGT by securing the network and generating rewards efficiently.

3. Validator Rewards:

   • Validators on Berachain generate rewards from securing the network and processing transactions. These rewards are paid out in various forms, including stablecoins and other tokens.

4. Distribution of Rewards:

   • The rewards generated from the delegated $BGT are distributed to users who have collateralized and staked their assets within the Roots protocol.

By leveraging automatic delegation, the Roots protocol ensures that $BGT is used effectively to secure the network and generate revenue streams for users.