What is expected in the development of NEAR?

NEAR Protocol is making important progress with these key updates:

1. Inflation Halving Activation (October 28, 2025) – Cuts the yearly increase of NEAR tokens from 5% down to 2.5%, helping reduce token dilution.
2. AI Agent Infrastructure Expansion (2026) – Growing privacy-focused AI tools through the Shade Agent Sandbox and new partnerships.
3. Dynamic Sharding Phase 3 (2026) – Automatically adjusts the network’s processing units (shards) based on demand to improve scalability.

In-Depth Look

1. Inflation Halving Activation (October 28, 2025)

What’s Happening?
NEAR validators are voting to lower the annual token emissions from 5% to 2.5%. This move aims to reduce inflation and encourage more active participation in the network rather than just passive staking. To pass, 80% of validators need to agree. If approved, staking rewards would decrease from about 9% to roughly 4.5% (NEAR Governance Forum).

Why It Matters
This change is generally positive for NEAR because fewer new tokens entering the market can make the existing tokens more valuable. However, lower rewards might upset some validators, which could temporarily affect network security.

2. AI Agent Infrastructure Expansion (2026)

What’s Happening?
NEAR is focusing on building AI-friendly infrastructure. The Shade Agent Sandbox, launched in August 2025, allows developers to create AI agents that can securely perform transactions across different blockchains. Additionally, partnerships like OceanPal’s $120 million SovereignAI project plan to acquire 10% of NEAR’s tokens to support AI cloud services (Coindesk).

Why It Matters
This is a strong positive for NEAR, positioning it as a leader in AI-driven blockchain applications. Still, there are challenges, including the complexity of implementing these technologies and competition from Ethereum’s established AI and DeFi projects.

3. Dynamic Sharding Phase 3 (2026)

What’s Happening?
Following the 2024 upgrade that introduced 100 fixed shards, Phase 3 will allow the network to automatically create or merge shards depending on how much demand there is. This aims to support over 1 million transactions per second while keeping transaction finality under one second (NEAR Blog).

Why It Matters
This upgrade is great news for NEAR’s growth because it means the network can handle more users and complex applications, attracting larger projects. However, technical challenges or coordination issues among validators could delay progress.

Conclusion

NEAR’s roadmap focuses on improving token economics by cutting inflation, expanding AI capabilities, and boosting scalability. These steps align with NEAR’s goal to be an “AI-native Layer 1” blockchain. Success depends on validator support for governance changes and smooth technical implementation. It will be interesting to see how NEAR’s lower inflation and AI focus affect its competition with Solana and Ethereum in 2026.

What updates are there in the NEAR code base?

NEAR Protocol’s latest software updates focus on improving cross-chain scalability and integrating AI technologies.

1. Stateless Validation & Sharding (May 2025) – Lowered hardware needs for network participants and increased transaction speed.
2. Resharding V3 Upgrade (July 2025) – Expanded the network’s capacity by increasing the number of shards from 6 to 8.
3. Inflation Halving Proposal (October 2025) – A pending vote to reduce the yearly token issuance from 5% to 2.5%.

Deep Dive

1. Stateless Validation & Nightshade 2.0 (May 2025)

What happened: Nightshade 2.0 introduced a method called stateless validation. This means that validators—those who help confirm transactions—no longer need to store the entire blockchain’s data. This change lowers the technical requirements for running a node and significantly boosts transaction processing speed, reaching about 10,000 transactions per second.

Developers also improved how the network splits and processes transactions in parallel (called sharding), which reduces costs for building decentralized apps (dApps). Plus, NEAR made it easier for Ethereum developers to join by supporting MetaMask, a popular Ethereum wallet.

Why it matters: This update makes it easier and cheaper for people to participate in the network, speeds up transactions, and attracts developers from Ethereum’s ecosystem. (Source)

2. Resharding V3 Protocol Upgrade (July 2025)

What happened: NEAR increased its number of shards from 6 to 8. Shards are like smaller pieces of the blockchain that process transactions independently, allowing the network to handle more activity at once. The upgrade also improved communication between these shards using a new bandwidth scheduler.

During the upgrade, node operators needed more memory (64GB RAM), but after the transition, memory usage decreased, making certain types of nodes more efficient.

Why it matters: While the upgrade required some technical effort from node operators, it strengthens NEAR’s ability to scale and support larger, enterprise-level decentralized applications over time. (Source)

3. Inflation Halving Proposal (October 2025)

What happened: Starting October 21, NEAR’s community will vote on cutting the annual token inflation rate from 5% to 2.5%. Validators need to update their software to participate in this vote.

For the change to take effect, at least 80% of validators must approve it. If passed, this would reduce the number of new tokens entering the market each year.

Why it matters: Lower inflation can reduce selling pressure on the token and encourage more people to stake their tokens, which helps secure the network. This is generally positive for the token’s value and long-term holders. (Source)

Conclusion

NEAR Protocol’s recent updates focus on making the network faster, more scalable, and economically sustainable. By lowering hardware barriers, increasing shard capacity, and proposing reduced inflation, NEAR is positioning itself as a strong platform for high-speed, cross-chain applications. The big question is whether these technical improvements and growing developer interest will lead to wider adoption, especially as AI features become more integrated.

Why did the price of NEAR fall?

NEAR Protocol (NEAR) dropped 4.10% in the last 24 hours, underperforming the overall crypto market, which fell 1.56%. The main reasons include:

1. OceanPal’s Controversial Shift – Doubts about a $120 million AI project focused on NEAR.
2. Uncertainty Over Inflation Cut Vote – Validators disagree on reducing token rewards, delaying progress.
3. Technical Weakness – NEAR’s price fell below key support levels, showing bearish signs.

In-Depth Look

1. OceanPal’s AI Plan Faces Backlash (Negative Impact)

What happened:
OceanPal, a shipping company listed on Nasdaq, announced it would invest $120 million to buy NEAR tokens and build AI technology through its subsidiary, SovereignAI. Despite partnerships with Kraken and the NEAR Foundation, the market reacted poorly: OceanPal’s stock dropped 21%, and NEAR’s price fell 4.4% after the news (Yahoo Finance).

Why it matters:
Investors are skeptical about a shipping company moving into blockchain and AI, especially since OceanPal’s revenue has dropped 54% year-over-year and it has no prior crypto experience. The plan to buy about 10% of NEAR’s total tokens (around 127 million) raises concerns about market impact and token dilution if purchases happen on the open market.

What to watch:
How SovereignAI executes its token purchases and whether the NEAR Foundation delivers on its partnership promises.

2. Inflation Cut Vote Hits Roadblock (Mixed Impact)

What happened:
NEAR’s network validators are voting on reducing the annual token inflation rate from 5% to 2.5%. As of October 28, 68.4% of validators support the cut, but 80% approval is required. Some large staking providers, like ChorusOne, oppose the change, saying it would hurt validators financially (Coinspeaker).

Why it matters:
Lower inflation could make NEAR tokens scarcer over time, potentially supporting the price. However, resistance from validators creates uncertainty. If the vote fails, the current 5% inflation will continue, possibly increasing selling pressure from staking rewards. DWF Labs has promised to buy 10 million NEAR tokens if the cut passes, but this depends on the vote outcome.

What to watch:
The final vote deadline is 23 days after October 23. If the proposal is rejected, selling pressure may increase.

3. Technical Analysis Shows Weakness (Negative Impact)

What happened:
NEAR’s price fell below its 30-day and 200-day simple moving averages (SMAs) at $2.52 and $2.55, respectively. The Relative Strength Index (RSI) is at 41, indicating neutral to bearish momentum. The closest support level based on Fibonacci retracement is $2.06, while resistance is around $2.31.

Why it matters:
Breaking below these key support levels suggests weakening momentum. Trading volume relative to market cap is 7.3%, showing moderate liquidity stress. The MACD indicator shows a slight bullish signal, but if NEAR closes below $2.20 consistently, the price could drop further.

Summary

NEAR’s recent price decline is driven by doubts about OceanPal’s risky pivot to AI, disagreements among validators over inflation cuts, and technical signs of weakness. Approval of the inflation reduction could help stabilize prices, but failure may lead to continued losses.

What to watch:
The outcome of the validator vote by November 15 and whether NEAR can hold the $2.20 support level. Also, keep an eye on OceanPal’s next steps—any missteps in their token purchase plan could increase selling pressure.

What could affect the price of NEAR?

NEAR Protocol’s price is influenced by both positive and negative factors.

1. Inflation Halving Vote (Positive) – 68% of validators support cutting token emissions by half, but they need 12% more approval.
2. OceanPal’s $120M AI Investment (Mixed) – A Nasdaq-listed company plans to buy 10% of NEAR’s tokens, but some investors remain skeptical.
3. Technical Signals (Neutral) – Some indicators suggest a rebound, while others point to continued weakness.

In-Depth Look

1. Inflation Halving Vote (Positive Impact)

What’s Happening:
NEAR validators are voting on whether to reduce the annual inflation rate from 5% to 2.5%. This means fewer new tokens would be created each year. To pass, the vote needs 80% approval. As of October 28, 68% of validators support the change. If approved, this could reduce selling pressure by making NEAR tokens scarcer, similar to how Bitcoin’s halving events have worked in the past. However, validators might hesitate because approving the cut would reduce their rewards by half.

Why It Matters:
If the vote passes, NEAR could become more valuable due to scarcity, especially since big buyers like DWF Labs have promised to buy 10 million tokens afterward. If it fails, inflation stays high, which could keep the token’s value under pressure.

2. OceanPal’s $120M NEAR Purchase Plan (Mixed Impact)

What’s Happening:
OceanPal’s subsidiary, SovereignAI, wants to buy 10% of all NEAR tokens to support AI projects. This plan is backed by companies like Kraken and the NEAR Foundation. However, OceanPal’s stock dropped 21% after the announcement, showing that investors are unsure about the company’s shift from shipping to blockchain technology.

Why It Matters:
Buying a large amount of NEAR could help stabilize or increase the price in the short term. But OceanPal’s recent financial losses and NEAR’s 20% price drop over the past month suggest there are risks that this plan might not succeed as hoped.

3. Technical Analysis and Market Mood (Neutral Impact)

What’s Happening:
NEAR’s price is currently below key moving averages, which usually signals weakness. However, some technical indicators like the Relative Strength Index (RSI) at 41 and a positive shift in the MACD suggest a possible rebound. Still, overall market fear is high (Fear & Greed Index at 39), and Bitcoin’s strong dominance (59%) limits gains for other cryptocurrencies like NEAR.

Why It Matters:
If NEAR’s price breaks above $2.49, it could see a short-term rise. But given the overall cautious market and recent price drops, investors should expect continued ups and downs.

Summary

NEAR’s future price depends on the outcome of the inflation vote, how quickly OceanPal buys tokens, and the overall mood in the crypto market. Keep an eye on the vote results expected by October 28 and OceanPal’s buying activity. The big question is whether NEAR’s AI partnerships can help overcome technical challenges in a cautious market.

What are people saying about NEAR?

The NEAR Protocol community is feeling a mix of excitement about AI developments and frustration over the price not moving much. Here’s what’s trending right now:

1. AI integrations are driving positive stories about NEAR’s future
2. $3.40 price level is testing investor patience as the price bounces around
3. Vote on reducing inflation is stirring discussions about NEAR’s token economy

Deep Dive

1. @AlloraNetwork: AI Layer Boosts NEAR’s Agentic Future bullish

“Predictive intelligence now powers NEAR’s Shade Agent infrastructure.”
– @NiphermeDave (2.1K followers · 18K impressions · Sept 16, 2025, 2:32 PM UTC)
View original post
What this means: This partnership strengthens NEAR’s AI capabilities, which could attract developers focused on building smart, autonomous applications.

2. @cryptoking_nl: $3.50 Retest Looms mixed

“NEAR rejected at $3.50 but gearing up for another attempt – momentum could accelerate.”
– @cryptoking_nl (14K followers · 87K impressions · Sept 24, 2025, 6:44 PM UTC)
View original post
What this means: The price has tried multiple times to break above $3.50, showing growing buyer interest. But if it fails again, sellers might push the price down.

3. @NEARProtocol: Inflation Cut Vote Nears Deadline neutral

“Validator vote to slash annual inflation from 5% to 2.5% enters final phase.”
– @NEARProtocol (689K followers · 2.1M impressions · Oct 28, 2025, 10:32 PM UTC)
View original post
What this means: If most validators agree (80% needed), NEAR’s inflation rate will be cut in half. This could reduce selling pressure but might also discourage some validators if rewards drop too much.

Conclusion

Overall, the outlook on NEAR is cautiously optimistic. The ecosystem is growing strong, with 46 million users in Q2 and new AI features, but the price has dropped about 18% over the past month, causing some frustration. Traders are watching the $2.45–$2.50 support area closely, while others wait for the inflation vote results and new investment products like Bitwise’s staking ETP. Keep an eye on the $3.40 price level—if NEAR breaks above it cleanly, it could confirm a bullish pattern with a potential target of $5.

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What is the latest news about NEAR?

NEAR Protocol is making bold moves and facing debates about its token economics as its AI goals meet market challenges. Here are the key updates:

1. OceanPal’s $120M NEAR Investment (October 29, 2025) – The shipping company’s shift to AI caused its stock to drop 21%, along with a dip in NEAR’s price.
2. Inflation Reduction Vote Nears Approval (October 28, 2025) – Validators are close to approving a cut in annual token inflation from 5% to 2.5%, but still need 12% more support.

In-Depth Look

1. OceanPal’s $120M NEAR Investment (October 29, 2025)

What Happened?
OceanPal, a company listed on Nasdaq, raised $120 million through a private equity deal to create SovereignAI, a new branch focused on AI. Their goal is to buy 10% of NEAR’s circulating tokens. They’re working with the NEAR Foundation and investors like Kraken to build AI infrastructure using NEAR’s blockchain and NVIDIA technology. However, OceanPal’s main shipping business is struggling, with revenue down 54% compared to last year and a $5.2 million loss, which has made investors nervous.

Why It Matters
This deal brings big money and AI credibility to NEAR, but OceanPal’s financial troubles and the 94% drop in its stock price this year raise concerns. NEAR’s price also fell by about 3.6% after the announcement. While this partnership could speed up NEAR’s AI development, there’s a risk that OceanPal’s instability could overshadow the benefits.
(Source: Yahoo Finance)

2. Inflation Reduction Vote Nears Approval (October 28, 2025)

What Happened?
NEAR’s network validators are voting on cutting the annual inflation rate from 5% to 2.5%. To pass, 80% of the staking weight must agree. As of October 28, 68.4% of validators (representing 68.41% of the stake) have upgraded to the new protocol version supporting this change. Some critics, like ChorusOne, say validators are voting against their own earnings, while DWF Labs has promised to buy 10 million NEAR tokens if the cut passes.

Why It Matters
If approved, this change could reduce the number of new tokens entering the market by about $71 million per year (based on NEAR’s current price of $2.24), which might make NEAR tokens more scarce and valuable. However, the vote tests the network’s governance because validators must agree to lower their own rewards. If the vote falls short, it could show divisions within the community.
(Source: Coinspeaker)

Conclusion

This week is critical for NEAR as it balances big partnerships with important changes to its token supply. The inflation cut could help reduce token supply during a tough market (NEAR’s price dropped 18.57% last month), but OceanPal’s risky move shows how challenging it is to combine blockchain with traditional industries. Will validators come together to support NEAR’s shift toward fewer tokens, or will disagreements slow progress?