NEAR co-founder proposes the establishment of the NEAR Protocol Sovereign Fund

According to ChianCatcher, Illia Polosukhin, co-founder of NEAR Protocol, proposed the establishment of a protocol sovereign fund at the governance forum to enhance the long-term sustainability of the network's token economics. This fund will consist of existing and future protocol treasuries and protocol revenues, holding NEAR tokens and generating returns, with part of the returns used to cover the costs of public goods in the ecosystem, such as security, validator support programs, and MPC service providers.

Polosukhin stated that using ecological revenue to purchase NEAR and fund public goods with the returns is more aligned for the long term than simply burning tokens. The initial size of the protocol treasury is approximately 30 million NEAR (about 53 million USD), and more revenue and emissions can be injected into the fund through governance, gradually reducing effective inflation and potentially transitioning to a fixed supply. This proposal is currently open for discussion for two weeks and is not mandatory.