NEAR Co-founder Proposes Protocol Sovereign Fund to Enhance Token Economics

ChianCatcher report: NEAR Protocol co-founder Illia Polosukhin has proposed establishing a Protocol Sovereign Fund on the governance forum to enhance the long-term sustainability of the network’s tokenomics. The fund will be composed of existing and future protocol treasuries and revenues, holding NEAR tokens and generating yield, with a portion of the yield used to fund public goods for the ecosystem, such as security, validator support programs, and MPC service providers. Polosukhin stated that using ecosystem revenues to purchase NEAR and fund public goods with the resulting yield offers better long-term alignment than simply burning tokens. The initial size of the protocol treasury is approximately 30 million NEAR (around $53 million), with additional revenues and emissions potentially added via governance over time, gradually reducing effective inflation and potentially transitioning toward a fixed supply. The proposal is currently open for two weeks of community discussion and is not mandatory.