DWF Labs Proposes NEAR Token Inflation Reduction from 5% to 2.5%

DWF Labs currently holds 11 million NEAR tokens with over half staked to secure the protocol.

Andrei Grachev, a top executive at DWF Labs, has challenged the core developers at Near Protocol (NEAR) to reduce the token’s inflation from 5 percent to 2.5 percent.

Grachev’s request was made in response to the criticism that the NEAR tokenomics has faced due to the 5 percent annual inflation.

The move to boost the long term prospects of the project.

“Dear Near Core Devs, I propose to reduce NEAR inflation from 5% to 2.5% per year. This would help to make the tokenomics more sustainable in the long run. We at DWF Labs are fully aligned with the NEAR ecosystem and vision. We have 5M NEAR tokens in our treasury and an additional 6M tokens staked to secure the protocol. Moreover, we are buyers of the token at current levels and would gladly purchase an additional 10M NEAR tokens to support the network.”

Earlier this year, Grachev warned that the crypto winter might continue in 2024 if the macroeconomic environment remains largely unchanged. He added that if the market slides further, it could reach lows seen in 2015.

suggest that the mid-cap altcoin might see a short-term rebound as it trades at oversold levels on the daily timeframe. Additionally, the MACD line on the weekly timeframe is approaching a crossover with the signal line in the bullish direction.