Oppose the Abrupt Inflation Cut — It Risks a Token Death Spiral
The proposal to sharply cut NEAR emissions is reckless and risks triggering a destructive cycle of unstaking, selling, and collapsing price — with no offsetting demand.
Why This Is Dangerous:
- Some stakers at the margin may only hold for the high APY — take that away, and they sell.
- NEAR has thin order books — even a small % unstaking can nuke the price.
- There are still no strong token sinks, and DeFi demand is not deep enough.
- Validator and delegation economics are not ready for a sharp cut.
This Is How Death Spirals Start:
- Stakers exit to chase yield elsewhere
- Selling accelerates into thin markets
- Token price collapses
- Confidence erodes — and it feeds on itself
Learn From Others:
- Polygon cut emissions early — and the token bled for years with no support
- Solana thrived despite high emissions — thanks to demand and user growth
- Ethereum went ultra-low emissions — but ETH still underperformed in the bear market
Emission cuts don’t automatically lead to price strength. Without demand, they backfire.
A Better Path:
- Delay any drastic cuts until real token sinks and use cases exist
- Build conviction-based models like long-term vaults, but do not force them
- Focus on increasing organic demand and DeFi integration
- Avoid ideological or rushed changes — protect the network and its participants
Let’s not make NEAR another case study in how to destroy your own token.
Vote no — and build first.