Berachain community drives inflation adjustment: BGT annual issuance reduced from 8% to 5%, strengthening long-term sustainability

GasWrangler · 2026-01-16T06:32:18+00:00

The Berachain community has proposed lowering the annual inflation rate of the BGT token from 8% to approximately 5%, aiming to enhance the long-term resilience of the network economy and optimize token issuance efficiency. This adjustment only affects the "reward rate," without changing the core mechanism. It is expected to reduce yields but strengthen the scarcity of BERA, helping to prevent excessive dilution and potentially increase long-term value. The proposal is currently in the community discussion phase.

GasWrangler

2026-01-16 06:32:18

Abstract generation in progress

【Blockchain Rhythm】The Berachain community recently proposed a notable initiative—reducing the annual inflation rate of the BGT token from 8% to approximately 5%. The goal of this adjustment is clear: to enhance the long-term resilience of the network economy, optimize token issuance efficiency, and align inflation levels with mainstream L1 networks.

In terms of implementation, this reform will only modify the “reward rate” parameter, while the existing PoL (Proof of Liquidity) reward framework, treasury distribution logic, and validator incentive system will remain unchanged. In other words, the total supply of BGT will decrease, but the core mechanisms of the project will stay intact.

However, there will be noticeable changes in yields. The return rates for BGT and BERA holders will definitely decrease, but this will instead strengthen the relative scarcity of BERA. The total incentives received by validators, DApp ecosystems, and liquidity providers will also be proportionally reduced. In the medium term, this fine-tuning can help the network avoid excessive dilution and may even better protect long-term value.

The team revealed that this direction will continue to be pursued—plans are to further bring the inflation rate closer to Ethereum's level between 2026 and 2027. Currently, this proposal is still in the community discussion stage, and it is expected that many voices will participate in the upcoming discussions.

BERA34,11%

ETH0,27%

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OnchainArchaeologist

· 12h ago

Inflation has been cut from 8% to 5%, this move is a bit aggressive, but it really needs to be controlled. Can BGT stabilize the price if it keeps going like this? Seems like caution is needed during the reduction period. From 8 to 5, it doesn't seem like much, but retail investors might get caught in the squeeze... Basically, it's about preventing runaway inflation, following the BTC approach, smart move. Only adjusting the reward rate, other parameters remain unchanged, this kind of adjustment is indeed precise, quite clever. Are all mainstream L1s at this level? Berachain is catching up pretty quickly. Reduction in supply is generally positive, but it requires ecological support as a prerequisite.

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LightningWallet

· 01-16 06:49

Damn, is this round of inflation reduction really happening? Dropping from 8% to 5%, there's something to it. Inflation has come down, BGT needs to perform well. Sounds good, but isn't it just because they're afraid of a coin price crash? When will there be real good news? This adjustment is quite aggressive; let's see how the community reacts. Not touching the PoL mechanism and blaming it? Is that still called reform? Long-term resilience... just listen, but we need to see if it can stabilize later. 5% is still a bit high; how does it compare to other L1s? Feels like a forced adjustment; 8% before was indeed too outrageous.

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ChainSauceMaster

· 01-16 06:48

Reducing from 8% to 5%, I like this move. Finally, there's a project willing to face the inflation issue head-on.

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PebbleHander

· 01-16 06:45

Reducing from 8 to 5, this move is pretty good, much more reliable than those projects that blindly increase issuance. --- Wait, just changing a parameter and it's done? Feels not that simple. --- I've heard this long-term sustainability argument many times, but the key still depends on whether the token holders will run away. --- Lower inflation is pretty satisfying for early entrants, but later participants will get cut again. --- Chasing mainstream L1? Please, first build the ecosystem before talking. The current atmosphere is a bit intense. --- Focusing only on adjusting the reward rate is a good detail, showing they’ve thought it through, not just making impulsive decisions.

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FundingMartyr

· 01-16 06:43

8% cut to 5%, this pace is a bit aggressive, it depends on how the community votes Can reducing inflation ensure long-term sustainability? It still depends on whether the ecosystem can truly take off Whether the PoL mechanism is changed or not is the key, just adjusting parameters seems more like a superficial fix Berachain's recent moves are learning from Bitcoin's halving strategy, haha Inflation decreases, but returns also shrink, holders don't know whether to be happy or upset

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NFT_Therapy_Group

· 01-16 06:40

Oh no, inflation has dropped from 8 to 5. Berachain really wants to stabilize it. BGT needs to think carefully. Falling behind other L1s would be embarrassing, but this 5% figure still feels a bit high. Just changing the reward rate to fix it? That seems lazy. The real problem is probably more than just that.

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