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Social Momentum Summary
Total Engagement - Comments: 6, Retweets: 0, Likes: 5, Impressions: 34
Verbatim Community Citations & Social Evidence 2 source posts analyzed
NEAR cut inflation from 5% to 2.5% and there's now a real motion to turn it off entirely. Alex Shevchenko on the debate: "There are discussions about whether it's even the right instrument." "Validators get NEAR tokens, but they're spending US dollars on servers and salaries. [Spoken audio]: So at the moment, the New York token economy is inflationary and the inflation is 2.5% per year. There are quite a lot of discussion that is happening inside of the ecosystem. This was reduced from 5%. But there are continued discussions around whether the inflation is the good economical instrument in order to motivate the validators to provide the security to the decentralized network. And there are quite a lot of voices that are saying that actually no, because they are getting near tokens, while instead they are spending US dollars to pay for their servers and for maintenance and salaries and all of this stuff. So this is a disproportionate thing. And when everything is good, then yeah, they are getting outsized returns. But when everything is bad, then everything is bad. So this is a strange, strange, strange dynamics. And yeah, so there are talks of that maybe instead of using inflation as an instrument here, maybe it's better to turn it off and have a different type of instrument in order to pay for the security of the protocol. However, to my best knowledge at the moment. I cannot say that I'm highly involved in this. I'm building the universal liquidity layer while somebody else is taking care of the inflation questions. So this is economics. But the discussions are happening and to my best knowledge, they are not yet finalized. But definitely there is a motion towards changing this.
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