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A recent update with several very important changes on @berachain. The Proof of Liquidity mechanism will be more secure when inflation and the reward vault are controlled, and the main changes this time also focus on these two aspects. - Reduce inflation by 8% to 5% per year, equivalent to other L1 targets. - The Reward Vault system has been tightened, eliminating ineffective vaults and contributing to boosting genuine demand for BERA. This restructuring will bring clear benefits to BERA: 🎯 Reduce selling pressure on BERA and position the ecosystem to compete long-term with mature L1s. This creates a de facto scarcity effect by extending the allocation of the same amount of Token over a longer period. 🎯 Shifting strategy from growth to sustainability. Currently, the project aims to maintain >$1 in protocol revenue for every $1 issued. PoL V2 and the buyback mechanism for non-BERA rewards are contributing to this long-term strategy. Inadvertently, the changes taking place on Berachain align with the current bear market, aiming to generate more sustainable revenue while merely Vai as a short-term liquidation -attracting chain.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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