- NEAR Protocol sees a 10% surge following a new proposal aimed at improving decentralization and empowering stakeholders.
- The proposal introduces a stake-weighted voting system, veNEAR token staking, and a 0.5% inflation rate to fund governance initiatives.
- “This governance overhaul is designed to provide better accountability and performance across the NEAR ecosystem,” said a spokesperson from the NEAR Foundation.
NEAR Protocol gains 10% as it unveils a comprehensive governance proposal to enhance decentralization and stakeholder control, marking a significant evolution in its ecosystem.
NEAR’s Governance Proposal: Boosting Decentralization and Stakeholder Control
NEAR Protocol has rolled out a comprehensive governance proposal in collaboration with Gauntlet and the NEAR Foundation that has resulted in a 10% uptick in NEAR token value. The proposal seeks to fortify the decentralization of the NEAR network by implementing a stake-weighted voting system. Rather than adhering to a one-person-one-vote model, NEAR token holders will now have voting power proportional to their stakes, encouraging active and passive participation alike.
A Revamped Governance Structure
The new governance framework aims to introduce several important changes in governance. This includes the formation of a Screening Committee responsible for managing delegate selection and pre-screening grant proposals. Additionally, the proposal outlines an Endorsed Delegate Mechanism, detailing the roles and operational procedures for delegates to streamline governance activities effectively.
Funding the New Governance Model
The proposal recommends a new funding structure featuring different funding types and incentives designed to motivate delegates and veNEAR holders. Stakeholders can stake their NEAR tokens for extended periods, ranging from three months to four years, to gain higher voting rights. This incentivizes long-term commitment and active participation in governance. Furthermore, the proposal introduces a 0.5% annual inflation rate, with 50% directed towards funding governance proposals, thereby ensuring sustained on-chain activity and community engagement.
Market Reaction to the Governance Proposal
The market responded positively to the new governance proposal, reflected in a 10% increase in the NEAR token price. At the time of writing, NEAR is trading at $6.22, marking a 7.81% increase from its intra-day low of $5.61. The market capitalization and 24-hour trading volume also saw appreciable growth, soaring by 7.93% and 85% respectively, reaching $6,851,091,519 and $535,805,328.
Technical Insights
Technically, NEAR’s momentum indicators appear bullish. The Moving Average Convergence Divergence (MACD) shifted into positive territory, signalling increased buying pressure. However, the Relative Strength Index (RSI) rating of 78 suggests that the asset may soon face a pullback, as this level indicates an overbought condition.
Conclusion
The introduction of NEAR Protocol’s new governance proposal marks a significant step towards enhanced decentralization and improved stakeholder control. By adopting a stake-weighted voting system, introducing veNEAR staking, and implementing a 0.5% inflation rate to support governance, NEAR is setting new standards in ecosystem governance. This strategic move has not only bolstered the token’s value but also promises a more democratized and efficient governance model, setting a solid foundation for future growth.
