The Near community proposed to reduce the maximum inflation rate of NEAR from 5% to 2.5%, and currently only 7.42% are in favor

PANews reported on June 25 that the Near community proposed a proposal to "improve the NEAR token economy by reducing inflation", which intends to reduce the maximum inflation rate from 5% to 2.5%, and retain flexibility for future adjustments. If the handling fee is destroyed by about 0.1%, the actual inflation rate will drop to 2.4%, and reducing the staking yield may incentivize token holders to participate in DeFi. The proposal points out that NEAR's current 5% annual fixed inflation rate has led to an increase in circulating tokens, equity dilution, and token depreciation due to the small amount of handling fees destroyed.

However, the current support rate for the proposal is only 7.42%, and there are still 36 days and 22 hours before the end of the vote. Some opponents said that reducing the validator incentive by 50% would make its verification nodes unprofitable, and the number of validators and stakers would decrease, and they did not believe that the inflation rate had a strong correlation with price performance.