NEAR (NEAR) Tokenomics
NEAR (NEAR) Information
NEAR Protocol is the blockchain for AI. A high-performance, AI-native platform built to power the next generation of decentralized applications and intelligent agents. It provides the infrastructure AI needs to transact, operate, and interact across Web2 and Web3. NEAR combines three core elements: User-Owned AI, which ensures agents act in users’ best interests; Intents and Chain Abstraction, which eliminate blockchain complexity for seamless, goal-driven transactions across chains; and a sharded blockchain architecture that delivers the scalability, speed, and low-cost execution needed for real-world AI and Web3 use. This integrated stack makes NEAR the foundation for building secure, user-owned, AI-native applications at internet scale.
NEAR (NEAR) Tokenomics & Price Analysis
Explore key tokenomics and price data for NEAR (NEAR), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
In-Depth Token Structure of NEAR (NEAR)
Dive deeper into how NEAR tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
NEAR Protocol’s token economics are designed to balance network security, incentivize participation, and support ecosystem growth. Below is a comprehensive analysis of its issuance, allocation, usage, incentive, locking, and unlocking mechanisms, with detailed explanations and a summary table for clarity.
Issuance Mechanism
- Initial Supply: NEAR launched with an initial supply of 1 billion NEAR tokens at its Token Generation Event (TGE) in April 2020.
- Inflation: The protocol has a fixed annual inflation rate of approximately 5%. As of December 2024, this has resulted in a total supply of about 1.23 billion NEAR.
- Distribution of New Issuance:
- 90% of new tokens (4.5% of total supply per year) are distributed as staking rewards to validators and delegators.
- 10% (0.5% of total supply per year) goes to the protocol treasury.
- Fee Burning: 70% of transaction fees are burned, and 30% are rebated to the smart contracts involved in the transaction. This burning mechanism can make NEAR deflationary at high network usage.
Allocation Mechanism
- Genesis Allocations: At launch, NEAR tokens were allocated as follows:
- Community Grants and Programs: 172 million NEAR (~17.2%)
- Operations Grants: 114 million NEAR (~11.4%)
- Foundation Endowment: 100 million NEAR (~10%)
- Early Ecosystem: 117 million NEAR (~11.7%)
- Public Sale (CoinList, August 2020): ~120 million NEAR (~12%)
- Private Rounds: ~84.27 million NEAR (~8.43%)
- Ecosystem Funding: In October 2021, NEAR announced an $800 million ecosystem fund, with allocations to DeFi, grants, startups, and regional hubs.
- Treasury and Grants: The NEAR Community Treasury, launched in March 2023, supports grassroots initiatives and is governed by a multi-sig with plans for on-chain voting.
Usage and Incentive Mechanism
- Staking: NEAR uses a Thresholded Proof of Stake (TPoS) consensus. Validators and delegators stake NEAR to secure the network and earn rewards.
- The minimum stake (seat price) is dynamically set; as of December 2024, it was 11,110 NEAR.
- Staking rewards are distributed per epoch (about twice daily).
- Smart Contract Incentives: Developers earn 30% of transaction fees generated by their contracts.
- Transaction Fees: NEAR is used to pay for transaction processing, smart contract deployment, and storage.
- Governance (Future): A proposal (as of late 2024) would allow users to lock NEAR for veNEAR, a non-transferable, vote-escrowed token granting governance power and additional rewards.
Locking Mechanism
- Staking Lock: Tokens staked for validation are locked for at least three days (the minimum unbonding period).
- veNEAR Lock (Proposed): Under the proposed governance framework, users can lock NEAR for veNEAR:
- Minimum lock: 3 months
- Maximum lock: 48 months
- Voting power increases with lock duration (e.g., 1 NEAR locked for 12 months = 1.5 veNEAR; for 48 months = 3 veNEAR).
- veNEAR holders receive APY rewards from the treasury.
Unlocking Time
- Staking Unlock: Unstaking NEAR from validation requires a minimum of three days before tokens become liquid.
- veNEAR Unlock (Proposed): Tokens locked for veNEAR become available after the chosen lock period (3–48 months).
Summary Table: NEAR Token Economics
| Mechanism | Details |
|---|---|
| Issuance | 5% annual inflation; 90% to validators/delegators, 10% to treasury; 70% of fees burned |
| Allocation | Community Grants (17.2%), Operations (11.4%), Foundation (10%), Early Ecosystem (11.7%), Public/Private Sales, Ecosystem Funds |
| Usage | Staking, transaction fees, smart contract deployment, storage, governance (future veNEAR) |
| Incentives | Staking rewards, smart contract fee rebates, governance rewards (future veNEAR) |
| Locking | Staking: min. 3 days; veNEAR: 3–48 months (proposed) |
| Unlocking | Staking: 3 days; veNEAR: after lock period (proposed) |
Additional Notes
- Staking and Delegation: NEAR’s account model allows tokens to be staked or delegated even while locked.
- Deflationary Potential: High network usage and fee burning can lead to negative net inflation.
- Governance Evolution: The protocol is moving toward more decentralized, on-chain governance with the introduction of veNEAR and a Security Council.
This structure ensures NEAR’s token economics are robust, balancing security, decentralization, and ecosystem growth, while providing clear incentives for all network participants.
NEAR (NEAR) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of NEAR (NEAR) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of NEAR tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many NEAR tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand NEAR's tokenomics, explore NEAR token's live price!
How to Buy NEAR
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NEAR (NEAR) Price History
Analyzing the price history of NEAR helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
NEAR Price Prediction
Want to know where NEAR might be heading? Our NEAR price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
