PANews reported on June 25 that the Near community proposed a proposal to "improve NEAR token economics by reducing inflation," aiming to lower the maximum inflation rate from 5% to 2.5%, while retaining future adjustment flexibility. If transaction fees are burned at around 0.1%, the actual inflation rate will drop to 2.4%, and reducing staking rewards may encourage token holders to participate in DeFi. The proposal points out that the current 5% annual fixed inflation rate of NEAR leads to increased circulating tokens, dilution of equity, and token devaluation due to low fee burning.
However, the proposal currently has only 7.42% support, with 36 days and 22 hours remaining until the vote ends. Some opponents argue that reducing validator incentives by 50% would make validator nodes unprofitable, potentially decreasing the number of validators and stakers, and they do not believe there is a strong correlation between inflation rate and price performance.
