NEAR Protocol has reduced its annual token inflation rate from 5% to 2.4% following a network upgrade announced on October 30, 2025. This change was implemented despite a failed community vote in August, which garnered only 45.06% support, falling short of the 66.67% needed for approval. The upgrade aims to lower staking yields and reduce token dilution. The decision has sparked controversy among some validators, who argue it sets a dangerous precedent. However, NEAR's CTO emphasized that the upgrade still requires 80% stake approval from block-producing validators to proceed.