Proposal: Create Vested NEAR — 2-Year Lock on 50% of Staking Rewards to Reduce Liquid Emissions and Protect NEAR’s Yield Advantage
Voting link: vote.intea.rs
Summary
We propose that 50% of all staking rewards on NEAR be locked for 2 years before becoming usable. The remaining 50% remains liquid as it is today.
This reduces short-term sell pressure without cutting NEAR’s 5% inflation or ~9% staking APY — one of the highest among major L1s. It preserves validator incentives, protects NEAR’s competitive yield advantage, and demonstrates the protocol’s smart contract power by enabling time-based rewards natively.
Why This Proposal?
- NEAR emits 5% inflation per year, with ~55% of supply staked → ~9% APY.
- Today, 100% of staking rewards are liquid, creating continuous sell pressure.
- NEAR’s ~9% APY is a major competitive edge over chains like Ethereum (~3.5%) and Solana (~7%).
- Cutting inflation would hurt validator income and weaken the staking incentive.
- At the same time, NEAR is building long-term token demand, but that takes time.
This proposal reduces emissions into the liquid market without reducing the total earned rewards — a balanced, forward-looking solution.
Proposal Details
2-Year Vesting on 50% of Staking Rewards
- Every epoch, rewards are split:
- 50% liquid NEAR, as now
- 50% Vested NEAR, which unlocks after 2 years
- Applies equally to validators and delegators
- Unstaking does not forfeit vested rewards
What Is Vested NEAR?
Vested NEAR is:
- Fully earned
- Time-locked for 2 years
- Automatically becomes claimable at the end of the lock period
This is not a slash or a cut — just a time alignment of rewards.
Optional: Liquid Vested Token (LVT)
Liquid staking protocols (e.g. Meta Pool, Marinade) may optionally:
- Mint a secondary token (e.g.
LiNEAR.vest) representing Vested NEAR - These can:
- Be traded
- Used in DeFi
- Held to maturity and redeemed 1:1 for NEAR
This preserves capital efficiency for advanced users and protocols while honoring the vesting schedule.
Benefits Overview
| Feature | Current | After Proposal |
|---|---|---|
| Inflation rate | 5% | 5% |
| Avg staking APY | ~9% | ~9% |
| Liquid portion | 100% | 50% |
| Vested portion | 0% | 50%, unlocks in 2 years |
| Token sell pressure | High | Lower by ~50% |
| Yield competitiveness | At risk w/ cuts | Fully preserved |
| Smart contract utility | Underused | Showcased |
Why This Matters
- Protects validator income and long-term network security
- Preserves NEAR’s APY edge, a major user acquisition lever
- Reduces liquid emissions without permanent monetary tightening
- Creates time for future demand (e.g. AI agents, chain abstraction) to catch up
- Showcases NEAR’s smart contract capabilities with time-locked native logic and optional tokenization
Implementation Feasibility
| Component | Complexity | Notes |
|---|---|---|
| Protocol reward split logic |  Medium |
Requires core dev update |
| Vesting ledger & unlock |  Low |
Similar to lockup logic |
| Claim function (delayed) | Low |
Simple once vesting tracked |
| LVT issuance (optional) | Medium |
Fully managed by LSD protocols |
| Wallet UX update | Low |
Can roll out progressively |
Conclusion
This proposal introduces Vested NEAR — a fair and effective way to reduce sell pressure without reducing yield.
- Full rewards are still earned
- Liquid emissions are halved
- NEAR’s staking yield advantage is preserved
- Long-term alignment is strengthened
- And NEAR’s smart contract platform shines
Let’s take the responsible path: reward belief, slow dilution, and showcase what NEAR can do.