The NEAR protocol recently implemented a network upgrade reducing annual token inflation from 5% to 2.4%, sparking controversy and concerns about governance integrity. This action, which bypassed community voting, resulted in decreased staking yields and a subsequent price decline of nearly 8%. 8. On October 30th, 2025, the NEAR protocol implemented this upgrade, reducing annual token inflation from 5% to 2.4%. The decision disregarded a previous community vote and has ignited controversy regarding decentralized governance. 7. Validators have criticized the move, prompting concerns about the impact on the ecosystem’s stability. Key validators are voicing anxieties over the potential implications of this unilateral action on decentralized governance. The halving of inflation reduces newly minted tokens by almost 60 million yearly, impacting staking yields which dropped from 9% to around 4.5%. This economic shift has raised questions about sustainability and protocol integrity. Chorus One, a prominent staking service provider, expressed concerns over the unilateral nature of this decision, emphasizing its potential to set a dangerous precedent in decentralized governance practices. Their call for postponement of node upgrades reflects these anxieties. While NEAR’s co-founders defended their action, highlighting alignment with economic goals, the debate regarding decentralization continues. The impact on the protocol is evident through a 27% decline in 24-hour trading volume and an 8% price drop over the past 90 days, as per CoinMarketCap. Further analysis by Coincu suggests that this governance dispute could significantly alter NEAR’s economic structures. These developments indicate both financial and technological shifts for the protocol, as it continues to prioritize its sustainability and emphasizes the importance of validator participation in future decisions.