NEAR Protocol has upgraded its network with a new update that reduces its annual token inflation rate from 5% to roughly 2.4%, even though the community vote intended to authorize the change failed to reach the required threshold.

The NEAR Protocol team announced today, Oct. 30, that it had completed the upgrade. The so-called halving upgrade curbs token dilution caused by nearly 60 million new NEAR tokens minted annually due to minimal fee burns, while also realigning incentives for on-chain participation and lowering staking yields from roughly 9% to 4.5%, assuming half of the total supply remains staked.

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