A proposal submitted on June 24 aims to enhance NEAR's long-term sustainability by realigning token incentives across the network.
The current 5% inflation rate of NEAR is considered misaligned with the network's growth and user activity, leading to concerns about excessive token issuance.
To address this, the proposal suggests decreasing the staking yield from 9% to 4.5% to better reflect current network activity and enhance NEAR's competitiveness in the DeFi space.
HOT Protocol views the inflation reduction as a strategic move to prioritize sustainability and boost NEAR's positioning in the wider cryptocurrency landscape, inviting community input and governance review.