Deep Dive
1. Capped Inflation Model (15 August 2025)
Overview
Moonbeam introduced a capped linear inflation model via Runtime 3800, capping annual GLMR issuance at 60M once total supply reaches 1.2B.
Technical Details
This replaces the previous unbounded inflationary model, aligning with long-term sustainability goals. The cap applies after the 1.2B threshold, slowing supply growth while maintaining staking rewards.
What this means
This is bullish for GLMR because it introduces predictable tokenomics, reducing sell pressure from unchecked inflation while keeping staking incentives intact. (Source)
2. Cross-Chain Bridge Support (15 August 2025)
Overview
Runtime 3800 activated native bridge compatibility between Moonbeam, Moonriver, and testnets, enhancing cross-chain interoperability.
Technical Details
The upgrade integrates Generalized Message Passing (GMP) and Cross-Consensus Messaging (XCM v1), enabling seamless asset/data transfers across Polkadot parachains and external networks like Ethereum.
What this means
This is neutral for GLMR in the short term but bullish long term, as improved connectivity could attract developers building multi-chain dApps, boosting network utility. (Source)
3. Full Fee Burn (18 July 2025)
Overview
Moonbeam shifted to burning 100% of transaction fees (up from 80%), accelerating deflationary pressure.
Technical Details
The update eliminated the 20% fee allocation to the Treasury, redirecting 80% of Parachain Bond Reserve inflation to fund ecosystem grants instead.
What this means
This is bullish for GLMR because it tightens supply dynamics—more usage directly reduces circulating supply, benefiting holders. (Source)
Conclusion
Moonbeam’s codebase updates prioritize sustainable growth (capped inflation), interoperability (cross-chain bridges), and deflationary mechanics (full fee burn). Together, these changes aim to balance developer incentives, user experience, and token value.
How will Moonbeam’s focus on cross-chain infrastructure position it against competitors like Polkadot 2.0?