NEAR Protocol Co-Founder Proposes 30M Token Sovereign Fund to Curb Inflation

Key Facts

In a move aimed at strengthening the network's financial structure and reducing reliance on new token issuance, NEAR Protocol co-founder Illia Polosukhin has proposed the creation of a sovereign fund with an initial capital of 30 million NEAR tokens. According to reports, this fund is designed to provide a sustainable financing mechanism for ecosystem infrastructure, including validator support and public goods, while simultaneously working to lower the token's inflation rate. The proposal seeks to convert protocol revenue into yield-generating assets rather than relying solely on token burns to manage supply.

This initiative comes as major crypto projects seek to optimize their economic models, with Polosukhin comparing the proposed structure to sovereign wealth funds in Norway and Singapore. Per analyst data, the fund would combine the existing treasury with future revenues, potentially reducing the dilution currently faced by token holders. Notably, the network had already reduced its inflation rate from approximately 5% to 2.5% in late 2025, reinforcing the current shift toward a more conservative monetary policy.

Operationally, "House of Stake" delegates are expected to participate in fund management through existing systems, though no formal vote has been scheduled yet. With real-time price data for NEAR currently unavailable, traders are monitoring the capacity of decentralized finance markets to absorb the treasury's yield strategies without increasing systemic risk. On the macroeconomic front, investors are looking ahead to the Fed Interest Rate Decision on July 29, 2026, which may impact broader risk appetite in the digital asset market.