PANews reported on January 16th that the Berachain community has initiated a proposal to reduce the annual inflation rate of BGT tokens from 8% to approximately 5%. This proposal aims to improve the network's long-term economic sustainability, increase emission efficiency, and align with the inflation levels of mainstream L1 networks. The proposal emphasizes that this move will not change the existing PoL reward mechanism, treasury allocation logic, or validator incentive functions; it will only adjust the total annual issuance of BGT. Specifically, this will be achieved by reducing the "reward rate" parameter.
The proposal analysis points out that lower inflation will reduce the yield for BGT and BERA holders, but will enhance the relative scarcity of BERA. Simultaneously, the total incentives received by validators, decentralized applications, and liquidity providers will also decrease. The team states that their goal for 2026-2027 is to further reduce inflation to a level closer to Ethereum's. The proposal is currently open for community discussion.


