NEAR Founder Proposes $53 Million ‘Sovereign Fund’: The Path to Fixed Supply

NEAR Protocol co-founder Illia Polosukhin has proposed the establishment of a “protocol sovereign fund” inspired by national wealth funds in Norway and Singapore, aiming to secure the network’s economic future.

In an alternative to the traditional methods typically used to strengthen tokenomics in the cryptocurrency world, NEAR Protocol is preparing to take a revolutionary step. Co-founder Illia Polosukhin introduced a new treasury management model to ensure the long-term sustainability of the network and fund the ecosystem. Published on the NEAR forum on Monday, this proposal is considered a turning point that could fundamentally change the project’s economic structure.

According to Polosukhin’s proposal, the fund, which will start with 30 million NEAR (NEAR) valued at approximately $53 million, will aggregate current and future protocol revenues. The primary goal of the fund is not merely to hold assets but to generate yields from these assets to meet the ecosystem’s fundamental needs. Similar to the operation of university endowments or large state funds, this model aims to transform cyclical revenues into productive assets.

A New Era in NEAR Economics: Yield-Oriented Treasury Management

The proposed model envisions using generated yields to finance public goods critical for network security, such as the Validator Support Program and multi-party computation (MPC) providers. Polosukhin argues that traditional token burns only offset inflation in the short term, whereas this new model will create a permanent financing base for the ecosystem. If this strategy is successfully implemented, NEAR could transition to a fixed supply over time, and total inflation could be gradually reduced.

Currently in the proposal stage, the plan will be discussed among community members and stakeholders for two weeks. According to market data, the NEAR price has increased by 3.5 percent in the last 24 hours, reaching $1.76. However, the asset is still down 29 percent on an annual basis. Parallel to the strong stance represented by the corporate identity in the visual, this new economic vision is expected to increase the network’s resilience against market conditions.