The NEAR Protocol has recently made headlines following a controversial network upgrade that has raised questions about its governance practices. On October 30, 2025, the protocol unilaterally reduced its annual token inflation rate, igniting a heated debate among community members and validators alike. The analysis suggests that the situation is causing growing concern.
Controversial Upgrade and Community Backlash
The upgrade, which decreased inflation from 5% to 24%, was implemented despite a failed community vote, leading to significant backlash from key validators. Many in the community are concerned that this decision undermines the principles of decentralized governance, as it was made without broad consensus.
Impact on Staking Yields
Staking yields have also been affected, plummeting from 9% to approximately 4.5%, which has forced validators to reevaluate their strategies and economic participation within the NEAR ecosystem. Chorus One, a prominent staking service provider, voiced strong criticism of the NEAR core team's actions, suggesting that such unilateral decisions could set a troubling precedent for future governance.
NEAR Co-founders' Defense
In defense of the upgrade, NEAR's cofounders argue that the changes are necessary to align with the protocol's long-term economic objectives, emphasizing the need for adaptability in a rapidly evolving blockchain landscape.
In light of the recent governance issues surrounding the NEAR Protocol, the cryptocurrency market continues to evolve, with projects like BullZilla and BlockDAG facing declining engagement. For more details, see the full report on BullZilla and BlockDAG.
