Berachain Regrets Over Token Allocation

Berachain’s co-founder, Smokey the Bera, expressed regret on the Unchain podcast about the initial sale of BERA tokens to venture capitalists (VCs), stating that the team had sold too many tokens ahead of the launch.

Token Sales and Future Plans

Smokey reflected that if they could restart the project, they would have limited the amount sold to VCs. He acknowledged that the majority of BERA tokens were allocated during seed rounds in early 2022 and during Series A funding, indicating they hadn’t anticipated the project’s growth.

Community Backlash and Response

Following the mainnet launch on February 11, Berachain faced criticism from users regarding airdrop allocations, tokenomics, and alleged insider trading. Observers noted issues with the token distribution favoring early investors. In response, Smokey announced plans to buy back portions of the token supply from VCs to address community concerns.

> “We totally sold too much to VCs. Our goal is now to make sure that we do right by people over time in light of that,” stated Smokey.

Current Market Status

As of March 5, 2025, BERA’s price was approximately $7.18, marking a 15% increase over the past 24 hours, though it had decreased nearly 1% over the week. The circulating supply is 107 million tokens with a total supply exceeding 500 million, and the market cap surpassed $750 million. The token debuted at nearly $15 but has since declined significantly.