DWF Labs, a major investor in NEAR Protocol, has urged the project to reduce its inflation rate to 2.5% to strengthen the token’s value. It will also be the protocol to foster the ecosystem’s growth.
The firm revealed that it already holds around 5 million NEAR tokens and has an additional 6 million staked. DWF Labs promised to buy another 10 million NEAR from the open market to fulfill its commitment if the protocol “manages” it.
In a public statement, DWF Labs co-founder Andrei Grachev affirmed that lowering inflation would benefit NEAR’s long-term sustainability. The proposal has sparked discussions within the crypto community, as such a move could impact token supply and investor confidence.
In response to Andrei Grachev’s request, the NEAR protocol’s governance team has opened the discussion to the community. In a recent post, they asked governance token holders, “Do you think there is a need to adjust NEAR Inflation?”
NEAR Protocol Sees Gradual Growth
At the time of writing, the NEAR token is currently priced at $2.61, with $3.19 billion in market capitalization. The network is gradually growing and has been active. Just last week, the network executed over 40 million transactions, putting it in the same league as big names like Solana and Tron.
Developers are also actively building on NEAR. Also, the upcoming major upgrade, Nightshade 2.0, is expected to take place by the end of the year.
Nightshade 2.0 is a major upgrade on the network, which is expected to boost scalability and speed through advanced sharding (similar to Ethereum).
By splitting the blockchain into parallel chains, the network will process transactions faster while keeping fees low. It expects to reach over 100,000 tps with Nightshade 2.0.
Furthermore, the leading investment firm Bitwise included NEAR in its latest ETF filing. In May, Bitwise filed an S-1 with the SEC to launch the NEAR ETF to track the token’s value minus expenses. This filing reflects NEAR protocol’s growing dominance and interest from big financial players.
After falling to $2.23, NEAR token has climbed back above a key short-term price level. If it breaks past $2.73, traders could see further gains.
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