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.
This new governance framework introduces a stake-weighted voting system, which will replace the traditional one-person-one-vote system. This means NEAR token holders get more voting power proportional to their stake, which encourages both passive and active token holdings.
The proposal also suggests changes to governing structures to improve efficiency, including forming a Screening Committee responsible for managing delegate selection and pre-screening grant proposals.
Another key aspect is the Endorsed Delegate Mechanism, which outlines the functions and procedures of delegates essential for operational governance. 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 are essential to the voting mechanism. They allow users to stake NEAR tokens for periods ranging from three months to four years, with longer staking periods resulting in greater voting rights.
The proposal also addresses the current 0.5% yearly increase in token supply. It suggests that 50% of this be redirected to fund governance proposals and incentivize ecosystem stakes.
After this proposal was announced, the price of NEAR token went up 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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