The post NEAR Protocol Considers Halving Token Inflation to Potentially Boost Investor Interest and DeFi Competitiveness appeared on BitcoinEthereumNews.com.

NEAR Protocol has announced a strategic proposal to reduce its token inflation rate from 5% to 2.5%, aiming to strengthen its ecosystem and enhance token value. The initiative includes a significant reduction in staking rewards, which is expected to shift the dynamics of validator incentives and potentially boost decentralized finance (DeFi) activity on the platform. According to COINOTAG sources, co-founder Illia Polosukhin emphasized that this move will better position NEAR as a store of value, especially in emerging AI-driven markets. NEAR Protocol proposes halving token inflation to 2.5%, reducing staking rewards and aiming to enhance investor appeal and DeFi competitiveness by 2025. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); NEAR Protocol’s Inflation Reduction Proposal: A Strategic Move to Bolster Token Value NEAR Protocol’s latest governance proposal targets a significant reduction in its annual token inflation rate from 5% to 2.5%, with implementation expected by 2025 pending community approval. This adjustment reflects a broader industry trend where Layer-1 blockchains seek to optimize tokenomics to attract long-term investors and improve network sustainability. By halving inflation, NEAR aims to create scarcity, which could enhance the token’s appeal as a store of value. The proposal also signals a shift away from heavy reliance on staking rewards, which currently stand at approximately 9%, potentially lowering them to 4.5%. This recalibration is designed to balance validator incentives with broader ecosystem health. Impact on Staking…

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Filed under: News - @ June 26, 2025 9:26 am