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 support a decentralized, scalable, and sustainable ecosystem. Below is a comprehensive analysis of its issuance, allocation, usage, incentive, locking, and unlocking mechanisms, with relevant tables and detailed explanations.
Issuance Mechanism
- Genesis Supply: NEAR launched with an initial supply of 1 billion NEAR tokens at its Token Generation Event (TGE) in April 2020.
- Inflation: NEAR is an inflationary token, with a fixed ~5% annual inflation rate based on the total token supply. This inflation is used to pay network validators and support protocol operations.
- Dynamic Inflation: Actual inflation can be lower than 5% due to the burning of transaction and storage fees. If network usage is high, the protocol can even become deflationary.
Issuance and Inflation Table
| Avg # of Tx/Day | Min NEAR in Fees/Day | NEAR Mint/Day | Annual Inflation |
|---|---|---|---|
| 1,000 | 0.1 | 136,986 | 5.000% |
| 10,000 | 1 | 136,985 | 5.000% |
| 100,000 | 10 | 136,976 | 5.000% |
| 1,000,000 | 100 | 136,886 | 4.996% |
| 10,000,000 | 1,000 | 135,986 | 4.964% |
| 100,000,000 | 10,000 | 126,986 | 4.635% |
| 1,000,000,000 | 100,000 | 36,986 | 1.350% |
| 1,500,000,000 | 150,000 | -13,014 | -0.475% |
| 2,000,000,000 | 200,000 | -63,014 | -2.300% |
This table demonstrates how increased network usage (and thus more fees burned) can reduce or even reverse inflation.
Allocation Mechanism
At genesis, the 1 billion NEAR tokens were allocated as follows (as of Dec. 18, 2024):
| Allocation Category | Amount (NEAR) | % of Initial Supply |
|---|---|---|
| Community Grants & Programs | 172,000,000 | 17.20% |
| Operations Grants | 114,000,000 | 11.40% |
| Foundation Endowment | 100,000,000 | 10.00% |
| Early Ecosystem | 117,000,000 | 11.70% |
| Community Treasury (2023) | ~5,660,000 | ~0.57% |
- Note: The project team controls the above allocations, but wallet addresses are not publicly disclosed. Allocation values may differ from initial allocations due to subsequent distributions and vesting.
Usage and Incentive Mechanism
- Staking & Delegation: NEAR is a Proof-of-Stake network. Validators stake NEAR to secure the network and earn rewards. Token holders can delegate their NEAR to validators.
- Transaction Fees: NEAR is used to pay for computation and storage on the network. 70% of transaction fees are burned, and 30% are rebated to smart contracts involved in the transaction.
- Medium of Exchange & Unit of Account: NEAR is used across applications for payments, access, and as a unit of account.
- Governance (Future): A proposal is under discussion to introduce vote-escrowed NEAR (veNEAR), where users lock NEAR to gain voting power and governance rewards.
Locking Mechanism
- Staking Lock: NEAR tokens staked for network validation are locked for the duration of the staking period.
- veNEAR (Proposed): Under the proposed governance framework, users can lock NEAR for veNEAR, a non-transferable token granting voting power. The lock duration ranges from a minimum of 3 months to a maximum of 48 months. Rewards for veNEAR holders are sourced from the protocol treasury and inflation.
Unlocking Time
- Staking Unlock: Staked NEAR can be unstaked according to protocol rules, typically after a set unbonding period.
- veNEAR Unlock (Proposed): Locked NEAR for veNEAR will be unlocked after the chosen lock duration (3–48 months), after which the original NEAR can be withdrawn.
Summary Table
| Mechanism | Details |
|---|---|
| Issuance | ~5% annual inflation, adjusted by transaction fee burns |
| Allocation | Community, operations, foundation, ecosystem, treasury |
| Usage | Staking, transaction fees, payments, governance (future) |
| Incentives | Validator rewards (90% of inflation), protocol treasury (10% of inflation), veNEAR APY |
| Locking | Staking lock, veNEAR lock (3–48 months, proposed) |
| Unlocking | Unstaking period for validators; veNEAR unlocks after lock duration |
Additional Notes
- Deflationary Potential: If network usage is high, the burning of transaction fees can outpace inflation, making NEAR deflationary.
- Governance Evolution: The veNEAR proposal, if adopted, will further decentralize governance and introduce new incentive structures.
This comprehensive overview covers NEAR Protocol’s token economics, including all major mechanisms and their implications for users, validators, and the broader ecosystem.
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
Interested in adding NEAR (NEAR) to your portfolio? MEXC supports various methods to buy NEAR, including credit cards, bank transfers, and peer-to-peer trading. Whether you're a beginner or pro, MEXC makes crypto buying easy and secure.
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.
Why Should You Choose MEXC?
MEXC is one of the world's top crypto exchanges, trusted by millions of users globally. Whether you're a beginner or a pro, MEXC is your easiest way to crypto.
Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
