Will The NEAR Protocol Endure Following This Crucial Vote? Will Validators Depart?

Discussing crypto AI inevitably brings the NEAR Platform to the forefront. The previous year saw significant growth for the NEAR Network, largely influenced by Nvidia and its ambitious plans. This positive trend was anticipated to bolster the NEAR USDT for the majority of this year, but the market had different intentions.

Currently, the NEAR price is facing substantial pressure. There’s little reason for optimism regarding price movements. The NEAR USDT has decreased by -52% year-to-date, with sellers remaining aggressive. In the past month alone, NEAR crypto has plummeted close to -30%, bringing prices down to critical support levels.

For those with a positive outlook, every decline might present buying opportunities, especially as AI remains a constant, and the protocols enabling these technologies stand to benefit greatly. By late October 2025, the NEAR Protocol ranks among the largest crypto AI initiatives, boasting a market cap exceeding $2.7 billion. Collectively, all crypto AI tokens are valued at over $26 billion, with a nearly -5% change in the last 24 hours.

(Source: Coingecko)

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NEAR Protocol Must Work Through This Vote and Emerge Stronger

Indeed, if the NEAR Protocol remains committed to its path, it could easily rise to become one of the apex players, potentially overtaking the prominent ChainOpera AI network and the ever-present Bittensor. Only time will reveal the outcome.

In the immediate future, the NEAR Platform must strengthen its position from this contentious vote. Validators are currently casting their votes on a proposal that would reduce protocol rewards by half, effectively lowering inflation from +5% to +2.5%.

Presently, the NEAR Protocol has capped its maximum inflation rate at +5%, which, as anticipated, dilutes the total supply over time. However, this is essential. The network can only sustain security if numerous validators ensure decentralization and reliability.

As the network evolves, the HOT Protocol and LiNEAR Network have indicated in the NEAR Network forum that reducing the inflation rate to +2.5% would be optimal for the network.

This halving factor now features in the NEAR Protocol’s agenda aimed at refining their tokenomics. Initially, they will limit annual NEAR emissions to +2.5%, thereby lowering inflation and making the token supply more predictable and even scarce.

The NEAR ecosystem is collaborating on a significant tokenomics upgrade

Building on 5 years of mainnet success, NEAR is entering its next major growth phase. NEAR now underpins multi-billion dollar volumes, powers the cross-chain available volume layer for privacy-preserving assets,… pic.twitter.com/27OU0Y8Maw

— NEAR Platform (@NEARProtocol) October 21, 2025

Moreover, via HPS-002, a novel base level system for smaller validators will be implemented. The aim is to guarantee sufficient decentralization within the platform. However, this alone will not suffice. To further promote the HODLing culture, the NEAR Foundation is enhancing veNEAR incentives for NEAR stakers.

(Source: House of Stake)

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Not Everyone Is Pleased: Will NEAR Platform Validators Depart?

Despite the optimistic nature of this proposal, discontent exists. Much of the dissent arises from large validators and earning yield providers. This group would clearly face a significant decline in income if the vote passes.

On X, one node, Chorus One, is calling on all other validators to abstain from voting or upgrading. They assert that the NEAR Foundation has steamrolled the network, resulting in a “serious governance issue” that creates a “dangerous precedent” that could eventually jeopardize the protocol’s integrity moving forward.

NEAR Governance Proposal

We would like to publicly share our concerns regarding a serious governance issue currently happening on the @NEARProtocol distributed record.

— Chorus One (@ChorusOne) October 22, 2025

Clearly, there will be a security issue if other validators opt against upgrading. While this proposal disrupts revenue, some believe this halving measure will likely proceed without issue.

On X, a critic expressed that validators would be adversely affected and understandably resist losing funds. They argue that validators are conflicted participants, and due to self-interest, status quo bias will prevail.

> “We believe this sets a dangerous precedent and undermines the integrity of NEAR.”

I appreciate you, my Chorus One friends, but let’s be honest: the core of your concern stems from the potential halving of your NEAR revenues.

Key issues I see with that perspective:

1. Validators… https://t.co/bdGacCJE6t

— 0xLouisT (@0xLouisT) October 22, 2025

Overall, proponents contend this proposal compels the NEAR Platform to strive for authentic usage rather than overly incentivizing protocol involvement, especially from validators, through mere rewards.

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