NEAR Protocol recently announced a new governance proposal in partnership with Gauntlet and the NEAR Foundation, resulting in a 10% increase in the value of its token. The proposal aims to enhance ecosystem decentralization and governance through various key changes. One of the notable changes is the introduction of a stake-weighted voting system that grants more control to NEAR token holders based on their stake. This encourages both passive and active holding of tokens, promoting a more engaged and committed community.
In addition to the stake-weighted voting system, the proposal also includes the establishment of a Screening Committee to manage delegate selection and prescreen grant proposals, ensuring effective governance evaluation. The Endorsed Delegate Mechanism is another crucial aspect of the proposal, outlining functions and procedures for delegates essential for operational governance. This mechanism also introduces a new funding model to support the governance structure, offering incentives for delegates and veNEAR holders.
The proposal touches upon resource allocation by suggesting that a portion of the annual inflation rate be allocated to fund governance proposals, stimulating on-chain activities and encouraging ecosystem stakers. This proposed governance framework represents a significant step towards further decentralization in the NEAR ecosystem. The enhanced delegate membership and periodic reviews by the Screening Committee demonstrate a commitment to ongoing evaluation of governance strategies based on performance and effectiveness.
Following the announcement of the governance proposal, the market responded positively with a 10% increase in the NEAR token price. The token was trading at $6.22 at press time, reflecting a 7.81% increase from its intraday low. The surge in market capitalization and trading volume further emphasized the market’s optimistic outlook on the proposed changes. The Moving Average Convergence Divergence (MACD) indicator moving into a positive region indicated increasing buying pressure, although an anticipated pullback suggested a potential cooling of the bullish momentum.
Overall, NEAR Protocol’s new governance proposal marks a significant milestone in the journey towards deeper decentralization and enhanced governance. The introduction of a stake-weighted voting system, the Endorsed Delegate Mechanism, and strategic resource allocation underscore NEAR’s commitment to strengthening its ecosystem. The positive market response to the proposal reflects the potential impact of these changes on the future development of the NEAR ecosystem. With ongoing evaluation and a focus on effectiveness, NEAR is poised to make further strides towards a more decentralized and sustainable governance model.
