NEAR Protocol

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<div class="key-points-section"><b>Key Points:</b>
 <ul>
  <li>NEAR Protocol's inflation-halving upgrade raises governance integrity concerns.</li>
  <li>Staking yields impacted negatively, dropping from 9% to 4.5%.</li>
  <li>Controversy following upgrade leads to NEAR price decline of 8%.</li>
 </ul>
</div>
<p>On October 30, 2025, the NEAR protocol implemented a network upgrade reducing annual NEAR token inflation from 5% to 2.4%, bypassing a community vote's failure to meet approval.</p>
<p>This unilateral decision has sparked controversy over governance integrity, with key validators criticizing the move, potentially affecting NEAR's standing in the decentralized ecosystem.</p>
<h2 id="near-s-inflation-cut-and-governance-strife">NEAR's Inflation Cut and Governance Strife</h2>
<p>NEAR Protocol's decision to implement a network upgrade reducing annual token inflation from 5% to 2.4% disregarded a previous community vote. The core leadership team's action, despite lacking <a href="https://twitter.com/NEARProtocol/status/1983899219862737349" rel="noopener noreferrer nofollow">governance support</a>, prompted significant discontent from several validators. Concerns have arisen over this decision's possible implications on decentralized governance.</p>
<p>The upgrade's halving of inflation effectively reduces newly minted tokens by almost 60 million yearly and decreases staking yields. As a result, <strong><a href="https://coincu.com/news/crypto-ma-activity-q3-2025/" rel="noopener noreferrer nofollow">staking rewards</a></strong> dropped from 9% to around 4.5%, affecting validator strategies and economic participation within the protocol. This abrupt reduction altered the network's <strong>economic framework</strong>, raising sustainability questions.</p>
<p>Chorus One, a key staking service provider, criticized the NEAR core team's unilateral decision, raising issues over the integrity of decentralized governance. The staking firm advocated for postponing node upgrades, citing that this move establishes a "dangerous precedent" in protocol governance. Despite these concerns, NEAR's co-founders argued the change aligns with the protocol's economic goals.</p>
<blockquote>
 "Forcing protocol changes without governance approval endangers the integrity of decentralized governance. We urge validators to delay node upgrades—this sets a dangerous precedent." — Chorus One, Staking Provider
</blockquote>
<h2 id="price-decline-and-expert-insights-on-near-s-controversy">Price Decline and Expert Insights on NEAR's Controversy</h2>
<p style="background-color: #222222; color: #ffffff; padding: 10px; border-radius: 5px;"><strong>Did you know?</strong> Bitcoin's halving events, known for extended bullish impacts, present contrasts as NEAR's protocol decision highlights potential centralization risks given the failed governance vote.</p>
<p>NEAR Protocol (NEAR) reports a current price of $2.14 with a market cap of $2.74 billion and a dominance of 0.07%, according to CoinMarketCap. The 24-hour trading volume stands at $136.41 million, down 27.34%. NEAR's price fell 11.69% over 90 days, reflecting larger market conditions as of November 1, 2025, 10:31 UTC.</p>
<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2025/11/NEAR-Protocol-daily-chart-on-1031-UTC-on-November-1-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/11/NEAR-Protocol-daily-chart-on-1031-UTC-on-November-1-2025file.jpeg" alt="near-protocol-daily-chart-8"> </a>
 <figcaption>
  NEAR Protocol(NEAR), daily chart, screenshot on CoinMarketCap at 10:31 UTC on November 1, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/near-protocol/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
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<p>Insights from <strong><a href="https://coincu.com/analysis/fed-rate-cut-crypto-impact-6/" rel="noopener noreferrer nofollow">Coincu's research</a></strong> indicate potential outcomes of this governance controversy that could reshape the protocol's economic structures. These <a href="https://phemex.com/news/article/near-protocol-poised-for-breakout-amid-ai-hype-30100" rel="noopener noreferrer nofollow">developments signal both financial and technological</a> shifts, given NEAR's focus on protocol sustainability and validators' growing role in governance decisions.</p>
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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</figure> <a href="https://coincu.com/uncategorized/near-protocol-inflation-adjustment/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

NEAR Protocol's Inflation Adjustment Sparks Governance Debate

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