# Reduce Inflation for NEAR Protocol

**URL:** https://gov.near.org/t/reduce-inflation-for-near-protocol/41140
**Category:** Governance
**Tags:** proposals
**Created:** [June 24, 2025, 3:38pm UTC](https://gov.near.org/t/reduce-inflation-for-near-protocol/41140 "2025-06-24T15:38:16Z")
**Posts on this page:** 1
**Showing post:** 3

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### Author: ![NEAR\_MAXi](https://avatars.discourse-cdn.com/v4/letter/n/2acd7d/32.png) [@NEAR\_MAXi](https://gov.near.org/u/NEAR_MAXi)
#### Post date: [June 24, 2025, 5:15pm UTC](https://gov.near.org/t/reduce-inflation-for-near-protocol/41140/3 "2025-06-24T17:15:55Z")

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### 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:

1. Stakers exit to chase yield elsewhere
2. Selling accelerates into thin markets
3. Token price collapses
4. 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.

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_[View the full topic](https://gov.near.org/t/reduce-inflation-for-near-protocol/41140)._