NEAR

NEAR Protocol is a sharded, proof‑of‑stake (PoS) Layer 1 blockchain designed for high throughput, low latency, and developer‑friendly smart contract deployment. It uses a sharded architecture (Nightshade) and a Doomslug‑based block production mechanism to achieve fast finality and predictable fees.

NEAR protocol parameters

Parameter	Value / Description
Slashing risk	Slashing is active on NEAR. Validators can be slashed for malicious behavior (for example, equivocation), and poor performance or unavailability can reduce rewards.
Inflation rate	Validator rewards are computed against a target annualized inflation rate of approximately 2.5% of the total NEAR supply. Transaction fees are burned and can offset issuance.
Staking rewards cadence	Staking rewards are added to the staked amount at the end of each epoch, which lasts approximately 12 hours (about twice per day).
Minimum staking amount	The validator “seat price” is dynamic and determined at each epoch by an auction mechanism (approximately the 300th-largest staking proposal, above a minimum threshold). Operators should check a live explorer such as NearBlocks for the current value.

Consensus and staking

NEAR uses a PoS consensus model where validators are selected based on stake, with delegation supported at the protocol level as well as Smart Contract-based Staking Pools allowing for custom commission structures. Validator selection and reward distribution happen on an epoch basis, driven by an auction that determines which validators are active in each epoch.

Slashing and performance risks

Slashing is an integral part of NEAR’s security model and applies to validators that behave maliciously, including equivocation and other consensus‑breaking actions. Underperformance or unavailability, such as extended downtime, can reduce rewards and may affect a validator’s position in the active set, impacting both validators and delegators.

Epoch duration and rewards

Staking rewards on NEAR are distributed at the end of each epoch. An epoch on NEAR is approximately 12 hours long, so rewards compound about twice per day when the validator is in the active set and performing correctly.

Tokenomics and inflation

Validator rewards on NEAR are computed against a target annualized inflation rate of approximately 2.5% of the total token supply. Transaction fees are burned, which can reduce net supply growth and, under sufficient network activity, may lead to net deflationary behavior.

The yield experienced by validators and delegators depends on this issuance schedule, the proportion of total supply that is staked, and actual network usage (which drives fee burn). Changes to NEAR tokenomics, such as reducing inflation from 5% to 2.5%, are implemented through governance processes and protocol upgrades.

Validator seat price and capital requirements

NEAR does not maintain a fixed, protocol‑wide “minimum staking amount” expressed as a static NEAR figure. Instead, the validator seat price is dynamic and recalculated every epoch via an auction mechanism, effectively aligning with the stake of roughly the 300th-largest validator proposal, above a minimum eligibility threshold.

Because the seat price changes with total stake and validator competition, any static number will quickly become outdated. Prospective validators and delegators should always consult a live explorer (e.g., NearBlocks’ node/validator explorer) to determine the current seat price and the active validator set before planning capital deployment.

Delegation model

NEAR supports native delegation, allowing token holders to delegate stake to validators without relinquishing ownership at the protocol level. Delegators receive a share of their chosen validator’s rewards after commission, while assuming the validator’s operational and slashing risk profile.

When selecting a validator, delegators should review uptime, commission, performance history, stake size, and any past slashing or downtime, as these factors materially affect realized returns and risk.