TechFlow news, January 16 — According to official information, Bera Labs has launched a proposal to reduce the BGT inflation rate to 5%. The proposal states that Berachain is currently targeting an annual BGT issuance rate of approximately 10%, while the actual average inflation rate so far this year has been around 8%. A higher inflation rate was appropriate during the early stages of network validators and the initial application ecosystem launch. However, as the ecosystem matures and new macroeconomic conditions emerge, it is recommended to lower the BGT inflation rate to approximately 5% to reduce unnecessary dilution, enhance sustainability and emission efficiency, and align with other competitive L1 blockchains.
The proposal will not modify reward mechanisms, treasury distribution logic, or any components of Proof of Liquidity (PoL).
The proposal also indicates that inflation rates will be further reduced during 2026 and 2027, bringing them closer to Ethereum's level. Additionally, the team is evaluating long-term improvements to PoL aimed at generating sustainable protocol-level revenue and increasing BGT's value over time.
