The Berachain community has proposed to reduce the BGT token's yearly inflation rate from 8% to around 5%.

**Berachain Community Proposes 8%→5% BGT Annual Inflation Cut (Jan 16)** The Berachain community has put forward a proposal to reduce the annual inflation rate of its BGT token from 8% to approximately 5%. The measure aims to boost the network’s long-term economic sustainability, improve emission efficiency, and align with inflation levels of mainstream Layer 1 (L1) blockchains. Notably, the proposal will not alter Berachain’s existing Proof-of-Liquidity (PoL) reward mechanism, treasury allocation logic, or validator incentive functions—it only adjusts annual BGT issuance via a cut to the “reward rate” parameter. Proposal analysis notes lower inflation will reduce yields for BGT and BERA holders but enhance BERA’s relative scarcity. Total incentives for validators, decentralized applications (dApps), and liquidity providers will also decrease. Berachain’s team has set a long-term goal: to further trim inflation to levels closer to Ethereum’s between 2026 and 2027. The proposal is currently open for community discussion.