AussieWayne marketcap is a much better metric here than price, due to the rebasing function.
The goal of Klima was always to develop a currency in which the carbon market uses as a unit of account and store of value. For that to be the case, a large supply is needed (a currency can't be property be utilized unless the supply is in the billions). A currency cannot also have these high APYs to be utilized. For example, people will not pair with KLIMA due to the opportunity cost that comes with staking APY. At lower APYs though, this suddenly becomes much more viable.
The supply has to grow in tangent with the treasury value. As you gain more value in the treasury, it gets harder and harder to increase the value even more (going from 1 million to 10million in treasury is one thing, but going from 100 million to a billion is significantly harder). Value actuation is not linear, but logarithmic, meaning the supply expansion will also need to mirror that to retain value.