Near community proposal to reduce inflation rate to 2.5% controversial vote in progress

PANews reported on June 25th that the Near community proposed a 'dropInflation to improve the NEARToken economy' plan, planning to reduce the maximum inflation rate from 5% to 2.5%, with future flexibility for adjustments. If about 0.1% of the transaction fees are burned, the actual inflation rate will drop to 2.4%, and the dropstake yield may incentivize Tokenholders to participate in Decentralized Finance. The proposal points out that the current fixed annual inflation rate of 5% for NEAR is due to insufficient transaction fee burn, 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 left until the vote ends. Opponents argue that reducing validator incentives by 50% will make validator nodes unprofitable, leading to a decrease in the number of validators and stakeholders. They also do not believe that there is a strong correlation between the inflation rate and price performance.