NEAR Foundation: Plans to halve the inflation rate to 2.5% and increase rewards for small validators and veNEAR holders

ChainCatcher news, the NEAR Foundation announced support for three proposed economic model upgrades put forward by the community, aimed at optimizing the token inflation structure, strengthening network decentralization, and incentivizing governance participation.

The core content includes: 1: Inflation halving upgrade: The maximum annual inflation rate of NEAR will be reduced from 5% to 2.5% to build a more sustainable token economy. This upgrade will officially take effect if 80% of block validators support it. After the adjustment, with 50% of tokens staked, the annual staking reward will remain at approximately 4.75%. 2: HSP-002 Validator Support Program: A budget of 100,000 NEAR per year will be established to subsidize small validators, avoiding the centralization risk caused by inflation reduction. The top 100 validators with the smallest and most stable staking scale are eligible to receive an additional 150 NEAR each quarter. 3: HSP-003 veNEAR Holder Reward Program: To promote participation in House of Stake governance, a reward mechanism with a total budget of 280,682 NEAR for three months will be established, which is expected to provide an additional 4%-4.5% annual yield for veNEAR holders participating in governance.

The NEAR Foundation stated that this proposal aims to ensure the long-term security and economic health of the network, promoting further expansion of NEAR in cross-chain liquidity and AI-driven on-chain economy. Currently, the House of Stake governance platform has launched on the mainnet, allowing NEAR holders to participate in voting and governance discussions.