Ilya Polosukhin, co-founder of the NEAR blockchain platform, has launched an initiative to create a sovereign protocol fund designed to ensure the long-term financial stability of the ecosystem. In his address on the official forum, the developer noted that the current security model of most first-level networks is based on inflation, that is, the constant issuance of new tokens, which erodes the share of holders who do not participate in staking. As an alternative, a mechanism similar to the state reserve funds of Singapore or Norway is proposed, where income from cyclical resources is reinvested into profitable assets. Since the profit from such investments will cover the costs of network security and the development of public goods, this will significantly reduce the rate of inflation without compromising the rewards of validators.

The key difference between the proposed strategy and simple token burning is to create a permanent source of funding. The deflation mechanism only temporarily compensates for inflationary pressures, while the capital placed in income protocols continues to generate added value for the entire ecosystem. At the initial stage, the fund's balance will amount to about 30 million NEAR tokens, which at the current market rate is equivalent to about $50.0 million. In the future, the structure will buy back native assets at the expense of incoming protocol revenue and place them in instruments that generate interest income. The profit earned is planned to be used to support validators and pay for the services of MPC providers, ensuring the stability of the infrastructure.

An important feature of the model is that the fund will hold NEAR tokens, rather than classic fiat assets, which adds additional market risk to the strategy. The author of the initiative expects to offset this vulnerability by diversifying sources of profitability and gradually scaling up capital. In the long term, such an approach will theoretically allow the network to switch to a fixed token supply model, and ecosystem participants will be able to receive a share of profits through the delegation mechanism in the House of Stake. Polosukhin stressed that this proposal is preliminary in nature, and the community has been given two weeks to discuss it in detail and develop final parameters before launching the pilot phase.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.