As a seasoned researcher with extensive experience in the blockchain and cryptocurrency space, I am particularly intrigued by the recent governance proposal introduced by NEAR Protocol. Having closely followed the developments within the NEAR ecosystem, I am impressed by their commitment to enhancing decentralization and improving governance structures.
The NEAR Protocol unveils an extensive governance proposition, crafted in collaboration with Gauntlet and the NEAR Foundation. This initiative intends to enhance the decentralization of the NEAR ecosystem by proposing a comprehensive blueprint that strengthens its governance structure, increases accountability, and boosts performance.
In this updated governance structure, a stake-based voting mechanism is implemented instead of the conventional one-person-one-vote system. As a result, the influence of NEAR token owners over voting outcomes is relative to their staked amount, thereby promoting both passive and active token holding behaviors.
The NEAR Protocol is on the brink of advancing further towards decentralization. From its inception, a portion of new NEAR tokens have been allotted to the Community Treasury. Recently, Gauntlet_xyz, along with the NEAR Foundation, has put forth an innovative on-chain proposition for this fund.
— NEAR Protocol (@NEARProtocol) July 16, 2024
The plan puts forth the creation of a new Screening Committee to oversee delegate selection and preliminary grant proposal assessments as part of the suggested enhancements to our governing framework, aiming for increased efficiency.
One significant element is the Endorsed Delegate Mechanism, which details the roles and processes of delegates necessary for effective governance. To facilitate this updated framework, the proposition recommends a modified funding arrangement. This includes the introduction of fresh funding categories, protective measures, and rewards for delegates and veNEAR token holders.
NEAR tokens play a crucial role in the voting process. By holding and staking these tokens for specified durations between three months and four years, users can increase their influence in decision-making processes within the NEAR ecosystem. Longer staking durations correspond to more substantial voting power.
The proposal puts forth a solution for the current annual 0.5% expansion of the token supply. It recommends that half of this growth be reallocated to finance governance initiatives and motivate community participation by rewarding ecosystem stakeholders.
Following the announcement of this proposal, the value of NEAR token rose by 9%, as indicated by Coinmarketcap. At present, NEAR is being transacted at a price of $6.41, representing an uptick of 8.3% compared to its lowest point in the day, which was $5.9.
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2024-07-17 06:12