According to a ChainCatcher report, Bera Labs has proposed a plan to reduce the BGT inflation rate to 5%. The proposal states that currently, Berachain mints BGT at an annual target rate of approximately 10%, and the actual average inflation rate so far this year has been about 8%. A high inflation rate is appropriate during the initial phase of the network validator community and early application ecosystem, but as the ecosystem matures and a new macroeconomic environment emerges, the proposal recommends reducing the BGT inflation rate to approximately 5%. This aims to reduce unnecessary dilution, enhance sustainability and emission efficiency, and align with other competitive Layer 1 (L1) blockchains. The proposal will not alter the reward mechanism, treasury allocation logic, or any components of the liquidity proof (PoL) system. The proposal also indicates that the inflation rate will be further reduced in 2026 and 2027, bringing it closer to that of Ethereum. Additionally, the team is evaluating long-term improvements to PoL, aiming to create sustainable protocol-level revenue and, over time, drive greater value for BGT.
Bera Labs Proposes to Reduce BGT Inflation Rate to 5%
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Summary
Bera Labs has proposed reducing BGT inflation to 5%, down from the current 10% target and an average of 8% this year. This move aims to reduce dilution and enhance sustainability as the ecosystem matures. The plan maintains existing reward mechanisms and PoL components unchanged. Additional inflation rate reductions are scheduled for 2026 and 2027. This adjustment aligns with broader interest rate trends and remains competitive with other L1 blockchains.
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