TechFlow news, January 16 — The Berachain community recently released a proposal suggesting reducing the annual inflation rate of the BGT token from the current ~8% to around 5%. The proposal aims to enhance long-term network sustainability, optimize the efficiency of inflationary spending, and align Berachain's inflation rate with other leading L1 blockchains. It retains the existing Proof-of-Liquidity (PoL) mechanism structure, adjusting only the annual BGT issuance. The implementation plan includes maintaining the base rate unchanged (0.4 BGT), while cutting the reward rate from 1.2 BGT to 0.65 BGT. The proposal notes that as the ecosystem matures, Berachain plans to further reduce the inflation rate during 2026–2027 toward Ethereum's level, strengthening the network’s long-term economic foundation.
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