NEAR Protocol co-founder Illia Polosukhin has proposed creating a protocol sovereign fund in the project’s governance forum, according to ChainCatcher. The proposal is framed as a way to improve the long-term sustainability of NEAR’s token economics. Under the plan, the fund would be built from the current protocol treasury, future treasury allocations, and protocol revenue. It would hold NEAR tokens and generate yield, with part of that income used to cover ecosystem public goods costs, including security, validator support programs, and MPC service providers. Polosukhin said using ecosystem revenue to buy NEAR and then funding public goods from the resulting yield is better aligned over the long run than simply burning tokens. The proposal puts the protocol treasury’s initial size at about 30 million NEAR, or roughly $53 million. Over time, governance could direct more revenue and emissions into the fund, with the stated aim of gradually reducing effective inflation and potentially moving toward a fixed supply. The proposal is open for discussion for two weeks and is not mandatory at this stage.
NEAR Protocol co-founder Illia Polosukhin has proposed setting up a protocol sovereign fund in the project’s governance forum, according to ChainCatcher. The stated goal is to improve the long-term sustainability of the network’s token economics.
Under the proposal, the fund would be formed from the existing protocol treasury, future treasury allocations, and protocol revenue. It would hold NEAR tokens and generate yield. Part of that yield would be used to pay for ecosystem public goods, including security, validator support programs, and MPC service providers.
Polosukhin said using ecosystem revenue to buy NEAR and then funding public goods through the resulting yield is more aligned over the long term than simply burning tokens.
The proposal says the protocol treasury would start at about 30 million NEAR, worth roughly $53 million. Over time, governance could direct additional revenue and emissions into the fund, gradually reducing effective inflation and potentially moving toward a fixed supply.
The proposal is open for discussion for two weeks. It is not mandatory at this stage.
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