#BinanceHODLerSAHARA The NEAR community has proposed reducing the token's inflation rate from 5% to 2.5% to improve the NEAR token economy. This move aims to reduce unnecessary token supply growth and dilution while still rewarding validators and stakers.

*Key Points:*

- *Current Inflation Rate:* 5% annual inflation rate, resulting in nearly full 5% inflation due to minimal fee burns (only ~0.1% of supply burned over the past year).

- *Proposed Change:* Reduce maximum inflation to 2.5%, potentially decreasing actual inflation to 2.4%.

- *Rationale:* High inflation without high usage is unsustainable, and reducing inflation will make NEAR a more attractive investment.

- *Potential Impact:* Lower staking yields (potentially reduced to 4.5%) and increased incentives for token holders to participate in DeFi.

*Community Perspectives:*

- *Supporters:* Believe reducing inflation will bolster the cryptocurrency's long-term sustainability, citing examples like Solana's similar decision to cut inflation.

- *Critics:* Warn that an abrupt inflation cut could trigger a token death spiral, with some stakers potentially unstaking and selling due to lower yields#ScalpingStrategy .$NEAR