In the past few years, most public chains have chosen a 'high inflation' model to incentivize users and nodes.
On the surface, this can make the ecosystem active in the short term, but in the long run, it is almost equivalent to continuously diluting the value of investors.
Every increase in supply means that the shares of holders are diluted, and it is difficult for the token price to remain stable.
Kava's approach is completely different. By launching Tokenomics 2.0, it directly reduces the inflation rate to zero. With no unlimited issuance, the scarcity of $KAVA is established, making the logic of long-term holding value clearer.
For investors, this means they no longer have to worry about the cycle of 'high returns today, price drop tomorrow,' and can look at the long-term development of the token with more peace of mind.
More importantly, Kava has not weakened ecosystem incentives as a result.
The establishment of a strategic treasury ensures the existence of incentive mechanisms while avoiding the hidden dangers brought by inflation. This model not only conforms to economic laws but also embodies long-termism.
