Saad Ullah
● NEAR Protocol just announced they've successfully completed their halving upgrade on mainnet — a significant step in the network's push toward better monetary policy. The upgrade cuts maximum annual inflation from 5% to 2.5%, aiming to make NEAR more deflationary while better aligning incentives for validators, developers, and users.
● This change walks a fine line between sustainable rewards and network security. Cutting inflation protects token value but also means lower staking yields. Some worry smaller validators might struggle with profitability in the short term, potentially leading to exits or moves to higher-reward networks. Still, NEAR Foundation believes reduced inflation will draw in fresh capital and stabilize prices, balancing out these risks.
● The halving reflects a broader industry trend toward deflationary tokenomics. Lower inflation should ease sell pressure and potentially boost token prices, which could increase overall network value. Going forward, NEAR may lean more on revenue from dApp fees and partnerships rather than inflation-based funding — creating steadier income without diluting token value.
● This marks a major shift in NEAR's economic model. The lower emission rate should improve stability and keep developer incentives healthy as the network grows. It puts NEAR in line with other leading smart contract platforms focused on sustainability and predictable growth.
Saad Ullah
