NEAR Community Decides to Slash Inflation and Reduce Emissions by Half

Key Points

• The Near Protocol network is set to vote on reducing the NEAR token emission from a 5% to a 2.5% annual rate.
• The vote will be conducted on the node layer, with validators deciding whether to upgrade the nearcore software to release 2.9.0.

The Near Protocol network will commence a vote from October 21, aimed at reducing the NEAR token emission from a 5% to a 2.5% annual rate. This is essentially its first inflation halving, similar to what happens to Bitcoin every four years.

The voting process will occur on the node layer, with validators deciding on whether to upgrade the nearcore software to release 2.9.0. This release, published on October 21 on the nearcore repository on GitHub, includes an explanation of the voting process.

Details of the Vote

The release only includes the emission halving (from 5% to 2.5%) and the activation parameters. It is fully backwards compatible and will not harm validators who choose not to upgrade. Upgrading casts a “YES” vote, while not upgrading casts a “NO” vote. This proposal requires an 80% approval, or that 80% of the network’s active stake is delegated to NEAR block producers running nearcore v2.9.0.

The activation is scheduled for October 28 at 1 a.m. UTC, upgrading the protocol version from 80 to 81 at the end of this epoch. If the threshold is not met by then, voting will extend for 23 more days, totaling 30 days to upgrade.

If less than 80% of validators upgrade by the end of the 30 days, the vote will resolve as a “NO,” keeping NEAR’s inflation at the current 5% tail emission. However, if the required percentage is reached at any moment post October 28, the halving will be activated—reducing inflation to a 2.5% tail emission—two epochs after the requirement is met.

NEAR Price Analysis

At the time of writing, Near Protocol’s native token, NEAR, is trading at $2.34. This price falls within a range dating back to early 2025, between two significant pressure zones. The support zone ranges between $1.80 and $2.05, with significant buying pressure; while the resistance zone ranges between $3.05 and $3.40, with significant selling pressure.

Furthermore, NEAR is currently trading below the 50-day exponential moving average (1D50EMA), a popular trend indicator. This suggests that the token is now in bear territory and needs to break out of this indicator before moving to the one-year resistance zone.

Interestingly, reducing NEAR’s supply inflation by half could alleviate the selling pressure mid-term, weakening the currently active resistance zone. This same effect is seen on Bitcoin every four years, following the halving event and favoring the bulls. Bitcoin’s most recent halving occurred on April 20, 2024, and BTC reached a new all-time high seven months later, in November 2024.

Near Protocol has gained traction in the crypto sphere in 2025 due to the NEAR Intents protocols connecting more than 20 different blockchains with decentralized, intent-based transactions. This has made it a popular choice for privacy enthusiasts to acquire and spend Zcash.