Berachain has implemented a significant fiscal reform, reducing the annual inflation rate of its governance token $BGT from 8% to 5%, marking a 46% decrease in emissions. This move is part of a broader strategy to transition from a high-inflation model used during its initial launch phase to a more sustainable economic framework. The reform also includes the elimination of inefficient "ghost treasuries" and the introduction of stricter treasury access criteria, aimed at enhancing the ecosystem's capital efficiency and long-term value. The Proof-of-Liquidity (PoL) mechanism, central to Berachain's operations, has been refined to ensure that $BGT emissions are directed towards high-productivity protocols that generate genuine user interactions. This shift is designed to strengthen $BGT's status as a core governance asset by reducing dilution pressure and enhancing its scarcity value. The Berachain Foundation plans to remove approximately 200 underperforming reward vaults, reallocating resources to protocols with substantial trading activity, thereby fostering a more competitive and resilient ecosystem.