NEAR Protocol Introduces Major Governance Proposal to Enhance Decentralization

NEAR Protocol has introduced a major governance proposal, developed with help from Gauntlet and the NEAR Foundation. The proposal aims to make the NEAR ecosystem more decentralized through a detailed plan that improves its governance, accountability, and performance.

The NEAR Protocol has unveiled a significant governance proposal, crafted in collaboration with Gauntlet and the NEAR Foundation. This proposal is designed to propel the NEAR ecosystem toward greater decentralization.

The proposal outlines a comprehensive plan to enhance governance, accountability, and performance within the NEAR ecosystem. It introduces a stake-weighted voting system, which will replace the traditional one-person-one-vote system. This adjustment will grant NEAR token holders more voting power relative to their stake, encouraging both passive and active token holdings.

In the words of Gauntlet, "This proposal aims to make NEAR more decentralized by introducing a detailed plan to improve governance, accountability, and performance."

The proposal also includes suggestions for modifying governing structures to improve efficiency, such as the establishment of a Screening Committee that will be tasked with managing delegate selection and conducting pre-screening of grant proposals.

Furthermore, the proposal outlines the functions and procedures of delegates, who are crucial for operational governance, through the Endorsed Delegate Mechanism. To support this new model, the proposal suggests a revised funding structure, including new funding types and safeguards, as well as incentives for delegates and veNEAR holders.

veNEAR tokens play a pivotal role in the voting mechanism, allowing users to stake NEAR tokens for periods ranging from three months to four years, with longer staking periods yielding greater voting rights.

The proposal also addresses the current 0.5% yearly increase in token supply, suggesting that 50% of this be allocated to funding governance proposals and incentivizing ecosystem stakes.

Following the announcement of this proposal, the price of NEAR token has surged by 9% according to Coinmarketcap. At the time of writing, NEAR was trading at $6.41, which is 8.3% higher than its lowest point of the day at $5.9.

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