PANews June 25 news, the Near community proposed a proposal to 'improve the NEAR token economy by reducing inflation' to lower the maximum inflation rate from 5% to 2.5%, while retaining flexibility for future adjustments. If the fee destruction is about 0.1%, the actual inflation rate will drop to 2.4%, and it will reduce staking yields or incentivize token holders to participate in DeFi. The proposal points out that the current 5% fixed annual inflation rate of NEAR is due to low fee destruction, leading to an increase in circulating tokens, dilution of equity, and devaluation of the tokens.
However, currently the support rate for this proposal is only 7.42%, with 36 days and 22 hours remaining until the voting ends. Opponents argue that reducing validator incentives by 50% would make their validation nodes unprofitable, leading to a decrease in both validators and stakers, and they do not believe there is a strong correlation between the inflation rate and price performance.
