NEAR Protocol (NEAR): Validator Inflation, Empty Buy Side

Originally published at mrnasdog.com/research/near/full by MrNasdog.

This is a MrNasdog Pressure Framework analysis of NEAR Protocol (NEAR) on Metric 1 (sell pressure) and Metric 2 (buy pressure). Narrative (Metric 3) is covered separately. The short version: NEAR mints 2.5% new supply every year to pay validators, against a buy ledger that is structurally empty.

The setup

NEAR Protocol is a layer-1 proof-of-stake smart-contract platform that pays its validators by minting new NEAR. The protocol parameters, read directly from the mainnet RPC (rpc.mainnet.near.org → EXPERIMENTAL_protocol_config):

• max_inflation_rate: 1/40 = 2.5% per year (the actual cap, not a temporary low; older third-party docs that cite "5%" are outdated)
• protocol_reward_rate: 0/1 = 0% — the share of inflation routed to the protocol treasury was reduced to zero by governance. Today all inflation goes directly to validators, none to a treasury.
• Total supply: ~1,296.2M NEAR · circulating ~1,249.8M (~96.4%) · staked ~595.6M (~47.7% of total, ~409 active validators)
• Price ~$2.43 → market cap ~$3.16B (May 2026)

The "treasury share zeroed" detail matters for what comes next. Pre-2025-ish, 10% of NEAR's annual inflation flowed into a protocol treasury that funded grants and ecosystem ops — meaning there was a growing on-chain NEAR pool the foundation could theoretically have used for buybacks or burns. With that line zeroed, all dilution goes to validators, and there is no protocol-level NEAR accumulating anywhere to push back on supply.

The sell ledger

What the design predictably puts on the market.

The headline is inflation. Net observed supply growth across a 6-day window in May 2026 was ~89,000 NEAR/day, or ~32.5M NEAR/year. That's what validators absorb in exchange for ~4.84% staking APY — and the portion they sell to cover operating costs is the protocol-level sell pressure.

The original 4-year vests on team, backers, and contributors started at mainnet launch in July 2020 and finished by mid-2024. Today they contribute effectively nothing.

The Tag B watch is NEAR Foundation lockup contracts. The official protocol-treasury account (treasury.near) currently holds only ~89K NEAR — small, because the 10% treasury share of inflation was zeroed. But NEAR Foundation's legacy operating reserves (from the original allocation) remain large, sit in a network of lockup contracts, and are discretionary. Enumerating those balances on-chain is a project of its own; the article flags this as a known unknown rather than guessing a number.

There is no FTX-style bankruptcy estate distributing NEAR. Source #4 is zero.

The buy ledger

What the design predictably takes off the market.

NEAR has no contract anywhere that buys NEAR with protocol revenue. The Nightshade gas-fee burn does destroy NEAR on every block — but at the chain's current on-chain volume (a few thousand dollars of daily transaction fees) it cancels only about 1.3% of inflation. Trackable, predictable, real — and functionally negligible at today's activity level. The ~595.6M staked NEAR is context (the framework's existing rule treats short-unbond stakes as liquid, same as HYPE/BNB).

Net position

Combine the ledgers and the structural picture is clean:

• Sell, Tag A: ~32.5M NEAR / year (inflation).
• Buy, Tag A: ~0.4M NEAR / year (gas burn).
• Net structural dilution: ~32M NEAR / year ≈ ~$78M / year at the current price.

This is the same shape as Ondo — scheduled supply up, structural buy ≈ 0 — but driven by smooth annual inflation rather than annual cliffs. The unfavorable verdict applies for the same reason: price has to come from discretionary demand growing faster than the structural supply tide, and the framework gives no credit for that.

The only entry that could flip the buy ledger

The single mechanism that would move NEAR's buy ledger off zero is the same as for Ondo: a fee-switch-style change that routes some portion of fees (or restored treasury inflation) to a structural buyback. A reinstatement of protocol_reward_rate to a non-zero share, paired with a buyback policy on the accumulated treasury, would be the on-chain version. Until governance does that, NEAR's structural conditions on Metric 1 + Metric 2 are unfavorable.

What to watch

1. Any governance proposal restoring the protocol treasury share of inflation (currently protocol_reward_rate: 0/1). This is the precondition for everything else.
2. Any governance proposal introducing a structural buyback (none today).
3. NEAR Foundation lockup balances — once enumerated, sets the Tag B size precisely.
4. NEAR Chain Abstraction / Intents adoption — drives on-chain gas burn higher. Today the burn is too small to matter; if activity scales 100× the offset becomes meaningful.

MrNasdog Pressure Framework analysis of NEAR, Metrics 1 & 2. Data + explanation only. Not financial advice. Numbers as of May 2026.

Data note: inflation rate, treasury share, protocol parameters, supply numbers, and validator stats are origin-first from the NEAR mainnet RPC (rpc.mainnet.near.org → EXPERIMENTAL_protocol_config and query/view_account). Daily supply growth + gas burn computed from NearBlocks daily stats. NEAR Foundation lockup balance noted as TBD pending on-chain enumeration of the Foundation's lockup-contract network.