NEAR Sovereign Fund Proposal Could Transform Treasury Management and Token Supply

• NEAR co-founder Illia Polosukhin proposed a Sovereign Fund backed by approximately 30 million NEAR.
• This fund will produce yield to finance network security, validators, and public goods.
• With this proposal, a fixed supply of NEAR could be possible in the future.

A new governance proposal from NEAR Protocol will bring a radical change. Especially to the way NEAR manages its treasuries and future economic strategy of tokens. The proposal was brought forth by one of the co-founders of NEAR, Illia Polosukhin, on August 3, 2026, through the NEAR Governance Forum. It involves an idea called the NEAR Sovereign Fund aimed at pooling together the treasury funds in order to earn sustainable yields for use in the operation of the network. The proposal also involves a long-term vision of finding alternative ways of funding the network’s security, other than token inflation.

Sovereign Fund Targets Sustainable Network Funding

The proposal suggests the creation of the NEAR Sovereign Fund, which would be created from the initial issuance of 30 million NEAR tokens. Instead of keeping treasury funds idle, the NEAR Sovereign Fund would create yield and support validator rewards, network security, Multi-Party Computation providers, and public goods. Furthermore, it could also support the common infrastructure and other services for the NEAR community. 

The NEAR House of Stake would govern this fund and enable token owners. This is to oversee the decisions made by the treasury. In addition, the proposal takes into account some problems that were previously raised by the community regarding the treasury and NEAR Foundation. Polosukhin introduced the initiative as a discussion one, not as a decision that was made. Public comments would last two weeks before governance actions.

Fixed Supply Vision is Dependent on Treasury Success

Apart from the treasury management system described above, the proposal outlines a vision for tokenomics in the NEAR ecosystem. The majority of proof-of-stake blockchain networks use constant token issuance to reward validators securing the network. On the contrary, Polosukhin recommends using investment income from the Sovereign Fund to cover such costs.

If income from the treasury consistently covers such operational costs, then, in the long run, the protocol can minimize or stop token issuance through inflation. This situation would make the environment ideal for achieving a fixed supply of tokens without undermining the security of the network.

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