Initia proposed an inflation rate adjustment and stake withdrawal subsidy plan, calling for the rejection of the original proposal.

According to Foresight News, the Initia Foundation released a governance proposal for the "Inflation Correction and Staking Exit Subsidy Program", which intends to revise the current annual release rate of 5% of the total supply of INIT to 5% of the original design of the annual staking supply, that is, about 1.25% of the total annual supply. The proposal stems from a misconfigured inflation rate since its inception on April 24, resulting in much higher than expected INIT inflation. In addition, the Foundation proposes a two-stage subsidy plan to compensate users affected by Proposal 39 for the loss of staking income: Class A subsidy: If users initiate unstaking between the release of Proposal 39 on May 20 and the release of the proposal on May 23, and cancel the unstaking and continue staking before the implementation of the proposal (expected to be June 2), they can receive a reward subsidy during the unstaking period. Category B subsidy: If the user's unstaking period is between June 2 and June 23, they will receive a reward subsidy equivalent to 25% of the new APR, calculated based on the actual number of days of unstake. Users need to apply for the subsidy through the Initia App before July 7, there is no lock-up requirement, and the claim window lasts for 30 days. Proposals will be voted on-chain at 14:00 on May 26 and executed or rejected on June 2. The Foundation also recommends a DOWNVOTE on the original Proposal 39 to ensure community trust and governance processes.