The Circulating Supply of NEAR Protocol: A Comprehensive Guide58


NEAR Protocol is a proof-of-stake (PoS) blockchain platform designed for scalability, ease-of-use, and cost-effective transactions. Its native token, NEAR, plays a crucial role in securing the network, facilitating governance, and incentivizing ecosystem participation.

The circulating supply of NEAR is an essential metric that gauges the number of tokens in active circulation. It influences the token's market capitalization, price, and overall liquidity.

Initial Token Distribution

The initial distribution of NEAR tokens was conducted through a series of funding rounds, including a private sale, seed sale, and public sale. The distribution was structured as follows:
Private Sale: 10%
Seed Sale: 6%
Public Sale: 3%
NEAR Foundation: 35%
Team and Advisors: 20%
Ecosystem Fund: 15%
Community Reserve: 10%
AscendEX Foundation: 1%

Current Circulating Supply

As of February 2023, the circulating supply of NEAR is approximately 650 million tokens. This figure represents the total number of NEAR tokens that are currently in circulation and available for trading.

Factors Influencing Circulating Supply

The circulating supply of NEAR can fluctuate over time due to various factors, including:* Token Burn: NEAR implements a token burn mechanism where a portion of transaction fees is used to buy back and burn NEAR tokens, reducing the circulating supply.
* Token Release Schedule: The NEAR Foundation has a token release schedule that gradually releases tokens for the ecosystem fund, team, and advisors over a period of years.
* Market Activity: Trading activity and the overall market conditions can influence the demand for NEAR tokens and, consequently, affect the circulating supply.

Impact on NEAR Value

The circulating supply has a significant impact on the value of NEAR. A lower circulating supply can drive up the token's price due to increased scarcity, while a higher circulating supply can put downward pressure on prices.

Conclusion

The circulating supply of NEAR Protocol is a dynamic metric that reflects the active participation within the NEAR ecosystem. It plays a crucial role in determining the token's value and market capitalization. By monitoring the circulating supply, investors and stakeholders can gain insights into the token's performance and make informed investment decisions.

2024-11-18


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