Most public chains cannot escape a contradiction during their development: to attract users and developers, there must be incentives; to have incentives, there must be inflation.

The problem is that when inflation is too high, long-term value is destroyed. This contradiction has always troubled the entire industry. The answer given by @kava is: to solve it with a zero-inflation mechanism + DAO governance.

In Tokenomics 2.0, the issuance increase of $KAVA has been completely closed, replaced by a strategically governed treasury by the community. This treasury is equivalent to an 'ecological fund,' which can flexibly support developers, nodes, and users based on the needs of different stages, rather than relying on rigid inflation for distribution as in the past. This not only avoids long-term dilution but also ensures ecological dynamics.

I believe this has two profound implications:

First, the establishment of scarcity logic. Just as Bitcoin's total supply limit brings long-term value, Kava's zero inflation likewise makes the token more attractive for investment.

Second, decentralization of governance. Many projects verbally advocate for decentralization, but in practice, the funds are still controlled by the team. Kava hands over the strategic treasury to the DAO, allowing true token holders to take charge, which is the true spirit of Web3.

This is why #KAVA BNBChainSummer has attracted so much attention. It is not just a market event but a demonstration for the entire industry: if public chains want to go far, they must abandon the old path of 'inflation for growth' and move towards a future of scarcity and transparency.