NEAR Foundation Proposes Establishing Sovereign Wealth Fund, with Long-Term Goal to Reduce Inflation

BlockBeats News, August 4th. NEAR Protocol co-founder Illia Polosukhin proposed the establishment of the NEAR Sovereign Wealth Fund, with existing and future protocol treasuries, generated and future protocol revenues as funding sources. The fund would be managed through governance-set parameters to generate returns denominated in NEAR.

According to the proposal, the fund could initially use the current approximately 30 million NEAR from the protocol treasury as a starting base. Protocol revenues would flow into the fund based on governance-determined scopes and be converted to NEAR; some of the returns will be used for validator support programs, MPC service providers, and other ecosystem public goods. House of Stake representatives can also participate and share returns through an existing delegation mechanism.

If the initial operation is successful, NEAR could gradually allocate more protocol revenues and some token emissions to the fund, while continuing to reward core validators and stakers, reducing actual inflation. In the long term, the fund could cover all network security and public goods costs, enabling NEAR to gradually transition to a fixed supply model.

This proposal is currently only a discussion proposal and is not a mandatory decision. Illia plans to gather feedback from validators, token holders, and community members in the next two weeks before evaluating whether to proceed with the establishment of the fund.