Simple analysis of NEAR coin:
Decentralized network platform.
1. Inflation policy and supply
NEAR adopts an inflation model to incentivize staking and ensure network security. Its inflation rate underwent a key reduction in 2025: from an annualized 5% to about 2.5%, meaning the number of new tokens entering circulation each year is reduced by about half. This decision process has sparked discussions in the community regarding governance procedures.
Starting point: Prior to the adjustment, the rewards paid to validators by the protocol were far higher than the income they obtained from network transaction fees, aimed at improving economic sustainability.
Potential impact: Lowering inflation can reduce long-term supply pressure from new tokens.
2. Dynamic balance: Fee burn mechanism
The supply of NEAR does not grow unidirectionally; its protocol design includes a fee burn mechanism. A portion of the transaction fees paid by users will be burned rather than being entirely paid to validators.
Core function: This links NEAR's net issuance to the actual usage of the network. If on-chain activity (transaction volume) is robust enough, the number of tokens burned may exceed the newly issued inflation tokens, thereby putting NEAR into a net deflationary state.
Current situation: Some analyses indicate that the amount of tokens burned through transaction fees by NEAR previously (e.g., 0.1% of annual burned supply) was insufficient to offset the issuance of new tokens. Therefore, growth in network activity is crucial for achieving deflation.
3. Staking and validator incentives
Users and institutions can stake NEAR tokens to participate in network security maintenance and receive rewards.
Yield changes: With the inflation rate halving, the annualized reward rate for stakers theoretically drops from about 9% to around 4.75%.
Impact on network security: Lower staking yields may affect the willingness of small validators to participate, posing potential risks to the decentralization of the network. In the future, if fee income can grow significantly with network usage, it may compensate for this part of the incentive.
4. Basic token data (as of recent information)
Circulating supply: Approximately 1.27 billion tokens
Usage: Mainly used for paying network transaction fees and storage rents, participating in staking, and engaging in ecological governance.n