NEAR annual inflation rate halved, community vote failed but still promoted

ChainCatcher news, according to The Defiant, the NEAR protocol launched a network upgrade on October 30, reducing the annual inflation rate of NEAR tokens from 5% to approximately 2.4%. This upgrade is expected to decrease the number of newly minted tokens by nearly 60 million each year, while also lowering the staking yield. However, the community governance vote originally scheduled to authorize this change did not meet the threshold, receiving only 45.06% support, below the technically required 66.67%, resulting in the proposal not being passed.

Despite the failed vote, the NEAR core team still incorporated the related inflation halving content into the protocol upgrade, prompting criticism from some validators. Notable staking service provider Chorus One stated that the core team ignored the results of the governance vote and forcibly pushed the upgrade, "jeopardizing the integrity of protocol governance," and called on other validators to refrain from upgrading their nodes, pointing out that this action sets a "dangerous precedent" for governance.