- NEAR Protocol has proposed a 30 million NEAR sovereign fund to support the network.
- The plan could also help reduce inflation over time.
NEAR Protocol is considering a major change to its token economy through a proposed sovereign fund that could strengthen the network while reducing inflation over time.
The proposal, introduced by NEAR co-founder and NEAR Foundation CEO Illia Polosukhin, would create a treasury funded with 30 million NEAR, worth about $57 million at current prices. Instead of burning protocol revenue, the fund would hold NEAR and generate yield to finance key ecosystem activities.
NEAR Plans 30 Million Token Sovereign Fund
According to the proposal, the sovereign fund would begin with the existing protocol treasury, revenue already collected, and future protocol income approved through governance.
I just posted a proposal on the NEAR Governance Forum. I'm proposing a new type of protocol fund to pay for public goods and make token economics more sustainable for the long-term. @NEARProtocol @NEARGovernance community members, please check it out and engage with the idea!…
— Illia (root.near) (🇺🇦, ⋈) (@ilblackdragon) August 3, 2026
Rather than using revenue for token burns, the treasury would accumulate NEAR and invest it through strategies that governance will determine later. The returns would help cover recurring expenses across the ecosystem while preserving the fund’s capital.
Polosukhin compared the idea to sovereign wealth funds used by countries such as Norway and Singapore, as well as university endowments. However, unlike those funds, NEAR’s treasury would hold and measure its performance in the network’s native token.
At the current market price of around $1.80, the proposed treasury would have an estimated value of $57 million.
Yield Could Fund Validators and Public Goods
If approved, income generated by the sovereign fund would support several important parts of the NEAR ecosystem.
Potential beneficiaries include the Validator Support Program, multiparty computation (MPC) providers, and other public goods that help maintain network security and operations.
The proposal also suggests that House of Stake delegates would participate through the existing governance framework. Governance would later determine how much revenue enters the fund, how much of the yield can be spent, and the rules governing its operation.
Proposal Supports NEAR’s Long-Term Inflation Strategy
The sovereign fund forms part of NEAR’s broader tokenomics strategy.
The network reduced its annual inflation rate from around 5% to approximately 2.5% in late 2025. It also introduced the Intents fee switch in early 2026, allowing protocol revenue to be used for purchasing NEAR.
Polosukhin argued that burning revenue only creates a temporary reduction in token supply. He believes using revenue to acquire NEAR and generate ongoing returns could provide a more sustainable funding model.
If successful, the approach could allow the protocol to gradually reduce inflation further and eventually move toward a fixed token supply. However, that outcome remains a long-term goal and has not been approved.
Governance Still Needs to Address Investment Risks
Several important details remain undecided.
The proposal does not specify how the treasury would generate yield. Community members have raised questions about whether the fund would use staking, lending, liquidity provision, stablecoins, or other investment strategies.
Some stakeholders also warned that NEAR’s decentralized finance ecosystem may not be large enough to absorb such a sizeable treasury without reducing returns or increasing risk.
Community feedback has called for clear exposure limits, transparent reporting, independent oversight, and careful risk management before any investment strategy is approved.
Two-Week Consultation Underway
The proposal is currently in its discussion stage and has not entered a formal governance vote. Polosukhin has invited validators, token holders, and other community members to provide feedback over the next two weeks. After the consultation period, supporters may prepare a formal governance proposal with detailed operating rules.
No launch date, target yield, asset allocation, or final spending model has been announced.
If approved, the sovereign fund would represent one of NEAR Protocol’s biggest treasury initiatives, aiming to create a sustainable source of funding while supporting the network’s long-term economic stability.
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