NEAR co-founder says token burn is inefficient, fixed-supply proposal is coming

Illia Polosukhin said on July 2 that NEAR Foundation token burns have shown little benefit in other public-chain ecosystems and that a new plan will outline another route to fixed supply over coming years.

NEAR

Summary

NEAR Protocol co-founder Illia Polosukhin said on July 2 that burning tokens held by the NEAR Foundation would be "a very inefficient way" to manage supply. He pointed to other public-chain ecosystems, saying foundation-funded token burns there delivered no meaningful benefits. Instead, Polosukhin said a new proposal is being prepared that will set out a different path for NEAR tokens to reach a fixed supply over the coming years.

Terms & Concepts
  • token burn: Permanent removal of tokens from circulation.
  • fixed supply: A token supply capped at a set amount.
  • public-chain ecosystems: Networks built on publicly accessible blockchains.