NEAR has announced support for three community-driven economic model upgrades designed to optimize token inflation, enhance network decentralization, and incentivize governance participation. The proposed changes include reducing the maximum annualized inflation rate from 5% to 2.5%, contingent on 80% validator approval. This adjustment aims to create a more sustainable token economy while maintaining staking rewards at approximately 4.75% annually, assuming 50% of tokens are staked.
Additionally, the HSP-002 Validator Support Program will allocate an annual budget of 100,000 NEAR to support small validators, offering the top 100 validators with the smallest stakes and stable performance an extra 150 NEAR per quarter. The HSP-003 veNEAR Holder Reward Program will establish a three-month reward initiative with a total budget of 280,682 NEAR, potentially increasing the annualized return for veNEAR holders participating in governance by 4%-4.5%.
NEAR Proposes Economic Model Upgrades to Reduce Inflation and Boost Governance
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