Deep Dive
1. Capped Inflation Model (15 August 2025)
Overview: Moonbeam implemented a capped linear inflation model in Runtime 3800, capping annual GLMR issuance at 60M once total supply hits 1.2B. This replaces previous inflationary mechanisms.
The update addresses long-term tokenomics sustainability by curbing unlimited supply growth. It aligns with networks prioritizing controlled emissions, potentially reducing sell pressure from new tokens.
What this means: This is bullish for GLMR because it introduces predictable supply dynamics, favoring holders and stakers as usage grows. Reduced inflation could improve scarcity if demand rises. (Source)
2. Bridge & XCM Support (15 August 2025)
Overview: Runtime 3800 added native bridge support between Moonbeam, Moonriver, and testnets, alongside compatibility with XCM v1 and GMP (General Message Passing).
This upgrade simplifies cross-chain asset transfers and smart contract interactions, strengthening Moonbeam’s role as a Polkadot-Ethereum interoperability hub.
What this means: This is neutral for GLMR in the short term but bullish long term. Smoother cross-chain workflows could attract developers building multi-chain dApps, increasing network utility. (Source)
3. Gas Fee Optimization (23 July 2025)
Overview: Runtime 3400 cut gas fees by 75% and introduced a refund mechanism for overestimated transaction costs.
By burning 80% of fees and routing 20% to the Treasury, the update balances deflationary pressure with ecosystem funding.
What this means: This is bullish for GLMR because lower fees encourage more transactions and dApp usage, while burning enhances token scarcity. (Source)
Conclusion
Moonbeam’s codebase updates prioritize scalability, interoperability, and sustainable economics. The capped inflation model and fee adjustments create a deflationary bias, while cross-chain upgrades reinforce its niche. Will these changes accelerate developer adoption as Polkadot’s EVM hub?