Near Protocol community rallies behind move to cut token inflation

A new design from the Hot protocol, a decentralized group acting on Near the protocoldemanded a significant reduction AI Crypto ProjectThe measure of tokens inflation.

On June 24, a decentralized organization submitted a plan to reduce the annual inflation rate from 5% to 2.5%. The aim of the proposal is to increase the long -term sustainability of the project token and equalize incentives throughout the network.

According to proposalThe current 5% inflation rate has become responsible and has damaged the competitiveness of a nearby “causing unnecessary growth and token dilution”.

The Hot protocol explained that the Bild inflation rate was designed with the assumption that the burning of fees from high transactions would compensate for most of the growth. In practice, however, only 0.1% of the token delivery has been burned over the last year.

As a result, the full inflation rate continues to inflate the circulation offer by more than 60 million almost a year and overcomes the actual network growth and user activity.

To face this, the new proposal proposes to reduce the download yield from 9% to 4.5%, which could increase the competitiveness of defi offers in the nearby.

Although this could lead to some validators, it also opens up space for new features creating demand, including revenues from transaction fees of project -based models.

Dao emphasized the importance of his proposal and states:

“Reducing inflation Near is an urgent priority. Every additional month of the current situation means millions of new close entry into circulation, which is not only dilation, but also unnecessary due to low burn burns. High inflation without high use is unsustainable.”

Community support

The proposal triggered strong support from the nearby ecosystem, with many players in the field expressed support.

Illia Polosukhin, co -founder of a nearby protocol, approved A plan that says that is better position close as a potential storage of value in developing AI -focused environment.

He also emphasized the need to reduce relying on unloading as a primary source of yield, dynamics that have a limited definition of innovation almost far.

Avichal Garg, co -founder of Electric Capital, reflected similar views while addition:

“[I am a] A big fan for a nearby ecosystem. The future of the crypt [is] Lower emissions, fees switch to control income to token holders and [rewarding] Long -term holders through larger income. ”

Meanwhile the proposal is currently undergoing a Volidator voice And it requires a two -thirds majority. At the time of the press, 13.36% of the required threshold was 66.67%.

If approved, the implementation is expected to be quarterly 2025, waiting for smooth technical introduction and final verification of the community.