Berachain Community proposes to reduce the BGT token's annual inflation rate from 8% to around 5%.

BlockBeats News, January 16th, the Berachain community initiated a proposal to "lower the BGT token's annual inflation rate from 8% to around 5%." The proposal aims to enhance the network's long-term economic sustainability, improve emission efficiency, and align with the inflation level of mainstream L1 networks.

The proposal emphasizes that this change will not affect the existing PoL reward mechanism, treasury allocation logic, or validator incentive function, but will only adjust the total annual BGT issuance. This will be specifically achieved by reducing the "reward rate" parameter. The proposal analysis points out that reducing inflation will lower the yield for BGT and BERA holders but will enhance the relative scarcity of BERA. Additionally, the total incentives received by validators, decentralized applications, and liquidity providers will also decrease. The team stated that in the future, between 2026 and 2027, the goal is to further reduce inflation to a level closer to that of Ethereum. The proposal is currently open for community discussion.