Attention, crypto fans! Did you see that movement in Berachain? 🐻 Things got good, and we can't stay in doubt.
Berachain comes with a well-thought-out move, but also with a ticking time bomb: its tokens. On one hand, they are launching an update that is a gem: Proof-of-Liquidity v2. 💎 What is this? Simple: now those who have BERA tokens can earn rewards directly, as if it were passive income. And it's not just anything, because 33% of the protocol's income goes directly to them. Pure fire! 🔥 This makes people want to buy BERA to hold them and earn money, creating solid demand. A point in favor!
But, watch out!, because not everything is rosy. 🚨 On the other side, we have the sword of Damocles: the massive unlocking of tokens. 🔓 It turns out that Berachain is going to release a lot of its governance tokens (BGT) to convert them into BERA. It is estimated that the circulating supply of BERA could multiply from 125 million to over 650 million by 2028. What does this mean? That there is a possibility of having so many tokens in the market that their value could dilute, a risk of inflation that could crash the price. Just like what happened to TIA, which plummeted! 📉
The future of Berachain is in a heavyweight fight. In one corner, the protocol improvements and ecosystem growth with new lending products and contracts. In the other, the inflation of the token supply. For BERA not to deflate, the demand for staking rewards and the growth of its ecosystem must be stronger than the increase in the number of tokens. 🥊
The question is: will Berachain be strong enough to withstand the pressure? Only time will tell, and the answer could be in the transition on August 27. Stay tuned for news! 👀$BERA
