A bloodless revolution is unfolding on the Layer 1 track, and Berachain was the first to pull the trigger.
When the crypto world is still quarreling over the next hundredfold narrative, Berachain has quietly completed a strategic upgrade.
Inflation reduction, BGT annual inflation decreased from 8% to 5%
Berachain has decided to reduce the BGT inflation rate from 8% to 5%, and the logic behind this move is thought-provoking.
This is not a simple adjustment; it is a strategic declaration.
In the early stages of public chain competition, high inflation was the standard weapon for vying for developers and users. Solana was once like this, Avalanche was like this, and almost all challengers relied on this potent drug.
But Berachain keenly realizes that inflation has completed its historical mission. Once the network foundation is solid, sustained high inflation will lead to threefold adverse effects:
Dilution of token holder rights, reduced capital efficiency, and masking of real growth data.
More critically, the market is re-pricing the value of 'inflation'.
Investors are beginning to ask: what have the newly issued tokens brought? Is it real user growth or a false TVL bubble? Is it sustainable income or a fleeting heat?
The answer from Berachain is clear: exchange less inflation for higher quality growth.
Behind this decision is a precise judgment of the maturity of the crypto market. When institutional capital becomes the market's main force, and when the regulatory framework gradually becomes clear, the past model of 'printing money to pump' has come to an end.
Bera Builds Businesses strategy: a paradigm shift from technology-driven to business-driven.
If reducing inflation is a rational return at the financial level, then the Bera Builds Businesses strategy is a disruptive innovation at the business level.
Berachain is attempting something that most public chains dare not imagine: to get involved in projects directly.
This is not simple ecological support, but a strategic investment that involves deep engagement, resource tilting, and result-oriented focus. The team has made it clear that they will focus on 3 to 5 high-potential areas and personally participate in business construction and operation.
The revolutionary nature of this model is reflected in three aspects:
First, redefine the value capture of public chains.
In the traditional model, public chains are infrastructure providers, and value capture relies on gas fees and staking rewards. However, this model has an obvious ceiling; no matter how prosperous the ecology is, public chains can only share a small portion of the pie.
The Bera Builds Businesses strategy breaks this ceiling. Through direct investment and deep involvement, Berachain can directly share the excess returns from project growth.
Second, establish differentiated competitive barriers.
In today's technology convergence, mere performance improvement is difficult to create a competitive moat. However, business capability may become a new barrier.
The Berachain team's former TradFi background plays a key role here. They understand finance, understand business, and know how to build a profitable business from scratch, which is a rare capability in a technology-dominated crypto world.
Third, create a positive feedback loop.
Successful business projects will bring real cash flow, which can be used to buy back tokens, invest in ecological development, and attract more excellent teams, forming a growth flywheel.
Korean buying pressure, the value discovery of smart money.
While all of this was still on paper, the market had already reacted.
$BERA price soared from $0.44 to $1.056, an increase of over 140%. More notably, major buying pressure came from the Korean exchange Upbit.
Korean investors are known for their keen insight. They not only look at technology and the team but also value the feasibility of the business model and the clarity of the monetization path.
The Bera Builds Businesses strategy just hits the sensitive point of Korean investors:
Clear revenue model.
Connection with traditional business.
The team's verifiable background.
Differentiated competitive strategy.
The influx of Korean capital is, in fact, a vote of professional investors for the new model. They understand Berachain's logic and express their recognition with real money.
Industry impact, the second half of public chain competition.
If Berachain's transformation is successful, it will profoundly impact the entire public chain track.
The competitive dimension has upgraded from two-dimensional to three-dimensional.
In the past, public chain competition mainly unfolded in two dimensions: technology and ecology. Now, business capability has become the third competitive dimension.
In this dimension, teams with traditional technical backgrounds may not have an advantage, while those with business genes will gain new opportunities.
The criteria for value assessment have changed.
The importance of traditional metrics such as market share, transaction volume, and user growth may decline, while the importance of traditional business metrics such as revenue, profit, and cash flow will rise.
This will lead investors to reassess the entire track, and those projects that can prove business viability will gain valuation premiums.
Talent mobility direction changes.
When business capability becomes a key competitive advantage, more business talents from traditional fields may enter the crypto industry. This cross-industry integration will accelerate the maturity process of the industry.
The value return of the crypto world.
From a more macro perspective, Berachain's transformation is a microcosm of the trend of value return in the crypto world.
From narrative-driven to value-driven.
In recent years, the crypto market has been dominated by various grand narratives—Metaverse, Web3, Layer2, AI + Blockchain. These narratives have created a huge expectation bubble.
Now, the market is starting to ask: what real value have these narratives created?
From a race for speed to a race for quality.
The competition in public chains used to be a race for speed—the higher the TPS, the better, and the shorter the confirmation time, the better. But once speed reaches a certain level, the marginal utility decreases sharply.
Now, the competition has shifted to quality—the quality of ecological projects, the quality of user experience, and the quality of business models.
From technical idealism to business realism.
The early crypto world was full of technical idealism, believing that technology could solve all problems. Reality has proven that technology is just a foundation, while business is the sustainable guarantee.
Berachain's transformation is essentially a return from technical idealism to business realism.
Outlook: a noteworthy experiment.
Strategic upgrade of Berachain:
It represents a way of thinking: in today's gradual decline of technical dividends, how should public chains seek new growth engines?
It raises a possibility: perhaps the future of public chains lies not in higher TPS but in deeper commercial integration.
It demonstrates a kind of courage: to dare to break industry conventions and to dare to define new game rules.
As the competition among public chains enters the mid-game, Berachain has already made its choice. Now, we need to focus on the execution details and actual effects of this choice.
Because this is not just a story of a project; it could be a turning point for the industry.
While other public chains are still entangled in technical details, Berachain has begun to think about a more fundamental question: how to establish a sustainable value creation mechanism in the crypto world?
The answer to this question may determine the competitive landscape of public chains in the next three years. And Berachain has already handed in its answer sheet.