As a seasoned analyst with years of experience in the crypto market, I have witnessed the importance of robust governance frameworks in ensuring the long-term success and sustainability of blockchain projects. The recent governance proposal by NEAR Protocol, in partnership with Gauntlet and the NEAR Foundation, is an exciting development for me as it shows a commitment to deepening the decentralization of the ecosystem.
The NEAR Protocol team, in collaboration with Gauntlet and the NEAR Foundation, has unveiled an extensive governance proposal. This revelation has triggered a 10% rise in the NEAR token’s value. The objective of this plan is to strengthen the decentralization of the NEAR ecosystem by enhancing governance, accountability, and performance.
New Governance Framework for NEAR Protocol Ecosystem
The NEAR Protocol has introduced a new governance proposition aimed at enhancing the decentralization of its ecosystem. This proposal suggests implementing a stake-based voting system as an alternative to the conventional one-person, one-vote method. As a result, NEAR token owners will wield greater influence proportional to their stake, thereby incentivizing both passive and active holdings.
NEAR Protocol is on the verge of taking the next step in decentralization.
From the very beginning, a specified proportion of the expanding NEAR token pool has consistently gone towards the Community Treasury.
Now, @gauntlet_xyz, in collaboration with the @nearfoundation, propose a novel on-chain…
— NEAR Protocol (@NEARProtocol) July 16, 2024
Additionally, the plan puts forward suggestions for improving the functioning of the governing bodies. One of these proposals is the establishment of a Screening Committee responsible for overseeing delegate selection and pre-screening grant applications. This measure aims to maintain the efficiency of governance evaluations.
Another significant element is the Endorsed Delegate Mechanism, detailing the roles and processes of the delegates essential for effective governance operations.
Funding Structure and Incentive Mechanisms
As an analyst, I’d suggest paraphrasing it this way: I’d like to highlight that the suggested plan introduces a novel financing structure aligned with the proposed new governance framework. This innovation brings about fresh funding categories, constraints, and rewards for delegates and veNEAR token holders. veNEAR tokens, which are integral to NEAR‘s voting system, allow users to lock their NEAR tokens for periods ranging from three months up to four years. The length of the stake determines the degree of voting power, thereby fostering long-term dedication and intensifying the governance role.
The proposal addresses the issue of the yearly 0.5% inflation rate and designates half of it for financing governance proposals and incentivizing ecosystem participants. This represents our thoughtful distribution of funds to maintain a vibrant on-chain community.
Simultaneously, the suggested governance structure signifies a significant advancement in the NEAR ecosystem’s journey towards decentralization. This progression is achieved through expanding the delegate pool and implementing regular evaluations by the Screening Committee to improve strategy assessments based on ongoing performance and effectiveness.
With my extensive background in blockchain technology and governance, I firmly believe that adopting a flexible and evolving approach to our protocol’s governance framework is crucial for long-term success. Through my experiences working on various projects and observing the rapidly changing landscape of this industry, I have come to understand the importance of staying agile and responsive to new challenges and opportunities. By ensuring that our governance structure remains effective and aligned with the objectives of the NEAR protocol, we can foster a thriving ecosystem that continues to innovate and adapt over time.
NEAR Token Price Surge
Following the unveiling of the latest governance plan, the value of NEAR tokens climbed approximately 10%. This growth can be attributed to investors’ optimistic reactions to the anticipated benefits of the proposed adjustments for the network’s future expansion. As of now, NEAR is being transacted at $6.22, representing a noteworthy increase of 7.81% from its intraday minimum price of $5.61.
At the rally, NEAR‘s market capitalization and daily trading volume experienced significant growth. The market capitalization increased by 7.93%, amounting to $6,851,091,519. Meanwhile, the trading volume surged by an impressive 85% to reach $535,805,328.
Supporting the current upward trend, the Moving Average Convergence Divergence (MACD) has moved into positive territory. As a result, the higher bars forming on the histogram indicate growing buying demand.
As an analyst, I would interpret a RSI rating of 78 as a potential indication for a price correction. The reason being, an overbought RSI represents a situation where the buying pressure has been strong, potentially leading to a weakening bullish trend.
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2024-07-16 23:36