Background and Motivation
As the Berachain ecosystem matures, the current high inflation rate is no longer fully suitable. The proposal notes that while the current rate was reasonable during the early stages, a reduction to 5% is now suggested to better align with evolving economic conditions and reduce unnecessary token dilution.
Optimization Goals
This adjustment aims to improve inflation efficiency, enhance BGT's sustainability, and bring its inflation model more in line with major L1 blockchains. Lowering the inflation rate is expected to offer network validators and ecosystem participants a more stable store of value.
Future Plans
- BGT inflation could be further reduced by 2026 and 2027, aiming to align closer with Ethereum’s model.
- The team is also exploring long-term enhancements for Proof of Liquidity (PoL), targeting the creation of sustainable protocol revenue.
- These steps are anticipated to boost BGT's long-term value and offer greater incentives to ecosystem participants.
What Remains Unchanged
It is important to note that this proposal does not alter the reward mechanisms, treasury allocation logic, or core components of Proof of Liquidity (PoL), ensuring system stability remains intact.