One of the most important factors that crypto investors should pay attention to when determining their long-term strategies is token inflation. Altcoins enter the market with low circulating supply and make massive rallies, then we see the price drop with new key openings. There are also those who struggle to reset token inflation.
Will KAVA Coin Rise?
Zero token inflation does not make the related altcoin a great option in the long run. Apart from that, there are many details that investors need to follow. However, we also know the long-term impact of token inflation on price. The KAVA Coin team announced today the date when inflation will be reset and the Kava 15 mainnet announcement.
Accordingly, the mainnet will be held on December 7th and the KAVA Coin inflation will be reduced to zero as of December 31st. The announcement shared minutes ago stated the following;
“The circulating KAVA supply is set as Maximum Supply KAVA. New KAVA Coins cannot be minted, only burned. After December 31, Kava Chain’s operations will transition to a sustainable model with transaction fees, emissions from local projects, and temporary allocations from the Kava Foundation.
Community-supported Proposal 141 accepted in May paved the way for this transformative change. Transitioning from an inflation-based system to a system sustained by accumulated fees, emissions from local projects, and temporary Foundation support required comprehensive changes in the Kava reward structure.”
The Future of KAVA Coin
The news did not cause a massive increase in price because the proposal had already passed much earlier. The dates investors are waiting for are December 7th and 31st. With the elimination of inflation, strong social media support can create a new wave of demand. However, the KAVA team believes that the latest update will attract DeFi protocols to the network.
“This milestone not only provides advanced features and support for developers and stakers, but also heralds a new era in the Kava ecosystem with the transition to zero inflation. This important step towards a stable and sustainable economic model will have a profound impact on the DeFi environment.
It invites a wide range of participants, from traders to developers, to join a pioneering platform that reshapes the future of DeFi. The Kava 15 mainnet update, focusing on stability and innovation, promises to be a transformative step for the Kava community and the wider DeFi world.”
