A new proposal from Hot Protocol, a decentralized group that works on the nearby protocol, has called for a significant reduction in the token inflation of the AI Crypto project.
On 24 June, the decentralized organization submitted a plan to beat the annual inflation percentage of almost 5% to 2.5%. The proposal is intended to improve the long-term sustainability of the token and rearranges of the crypto project in the network.
According to the proposalThe current inflation of 5% has become an obligation, which damages the competitiveness of Near Appression by “causing the growth and dilution of unnecessary token.”
Hot Protocol explained that Near’s inflation was designed with the assumption that reimbursements of high transaction volumes would compensate for much of the growth growth. In practice, however, only 0.1% of the token stock was burned last year.
As a result, the full inflation continues to blow up the circulating offer by more than 60 million almost annually, so that actual network growth and user activity are surpassed.
To prevent this, the new proposal suggests the reduction yield from 9% to 4.5%, which means that almost based Defi offers can become more competitive.
Although this can lead to some validators going out, it also opens the space for new functions for generating demand, including income from transaction costs on intent -based models.
The DAO emphasized the importance of his proposal and stated:
“Reducing the inflation of Near is an urgent priority. Every extra month of the status quo means millions of new almost -fitted blood circulation, which is not only watering, but is also unnecessary in view of the low reimbursement burning. High inflation without high use is untenable.”
Support for the community
The proposal has received strong support from the nearby ecosystem, in which many players in the industry express support.
Illia Polosukhin, co-founder of Near Protocol, approved The plan that it says better that it is in the vicinity of a potential value of value in emerging AI-oriented environments.
He also emphasized the need to reduce the dependence on income as the primary source of yield, a dynamic that has limited defi -innovation so far.
Avichal Garg, the co-founder of electric capital, repeated similar views, while add:
‘[I am a] Big fan of this for the nearby ecosystem. The future of crypto [is] Lower emissions, switch reimbursements to stimulate income to token holders, and [rewarding] Long -term holders through more income. “
In the meantime, the proposal is currently undergoing one Validatorstem And requires a two -thirds majority to pass. From the moment of the press, 13.36% of the required threshold of 66.67% is protected.
If approved, the implementation is expected by Q3 2025, pending a smooth technical rollout and definitive community validation.
