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The Near community has proposed to reduce the maximum inflation rate of NEAR from 5% to 2.5%, currently only 7.42% in favor.
PANews June 25th news, the Near community proposed a proposal to improve the NEAR Token economy through dropInflation, planning to reduce the maximum inflation rate from 5% to 2.5%, with flexibility for future adjustments. If about 0.1% of the transaction fees are burned, the actual inflation rate will drop to 2.4%, and dropstake yield may incentivize Tokenholder participation in Decentralized Finance. The proposal points out that the current fixed annual inflation rate of 5% for NEAR is low due to the burning of transaction fees, leading to an increase in circulating Tokens, dilution of equity, and Token depreciation. However, the current support rate for the proposal is only 7.42%, with 36 days and 22 hours until the end of the vote. Opponents argue that reducing validator incentives by 50% would make their validating nodes unprofitable, leading to a decrease in the number of validators and stakers, and they do not believe that the inflation rate is strongly correlated with price performance.