Deep Dive
1. Runtime 3800 with Capped Inflation (July 2025)
Overview: This major network upgrade enforces a hard cap on future GLMR issuance and activates new cross-chain bridge infrastructure. It provides long-term supply predictability without affecting current transaction costs or developer tools.
The upgrade implements a capped linear inflation model, setting a maximum of 60 million new GLMR per year once the total supply reaches 1.2 billion. It also includes compatibility with Generalized Message Passing (GMP) and Cross-Consensus Message Format version 1 (XCM v1), which are standards for secure communication between different blockchains. The update includes cleanup of old migration data and optimizations to runtime "weights," which are metrics that determine the resource cost of operations on-chain.
What this means: This is bullish for GLMR because it creates a predictable and limited future supply, which can be positive for the token's value over time. The new bridge support makes it easier and safer to move assets between Moonbeam, Moonriver, and test networks, improving the overall user experience for cross-chain activities.
(Moonbeam Network)
2. Full Transaction Fee Burn (2025)
Overview: This tokenomics update permanently removes all GLMR paid for transaction fees from circulation, replacing the previous model where 80% was burned and 20% went to the community treasury.
The change simplifies the fee structure and directly ties network usage to deflation. To compensate the treasury for the lost income, 80% of the inflation from the Parachain Bond Reserve is now redirected to fund ecosystem grants and development. The overall network inflation rate remains targeted at around 5%, with staking rewards unchanged.
What this means: This is bullish for GLMR because higher network activity leads to more tokens being permanently destroyed, which can help support the token's price. It benefits active users and long-term holders by making the asset more scarce over time.
(Moonbeam Network)
3. Runtime 3400 & Gas Fee Reduction (Q1 2025)
Overview: This earlier runtime upgrade significantly lowered the cost of transactions on Moonbeam and improved the fee estimation process for users.
The update reduced gas fees by 75%. It also introduced a refund mechanism for "Proof of Validity" (PoV) bytes, meaning users get reimbursed if they overpay for the block space their transaction uses. This makes fee estimation more forgiving and cost-effective.
What this means: This is bullish for GLMR because cheaper and more predictable transaction costs make the network more attractive for everyday use, especially in high-volume areas like gaming and DeFi. It lowers the barrier to entry for all users.
(Moonbeam Network)
Conclusion
Moonbeam's recent development trajectory prioritizes sustainable economics through supply caps and aggressive fee burns, while simultaneously enhancing its core infrastructure for seamless cross-chain interoperability. Will the combination of hardened tokenomics and superior bridging capabilities be enough to catalyze the next wave of developer adoption?