NEAR is one of the most anticipated technologies in 2020 as it solves both the size and usability problems that have prevented existing chains from exploding and causing fees to explode.
There are many solutions to make blockchain highly scalable. One of them is called sharding which the NEAR protocols have deployed quite successfully to handle large transaction throughput.
NEAR Protocol (NEAR) price, marketcap, chart, and fundamentals info
NEAR Protocol is a scalable blockchain designed to provide the performance and user experience needed to bridge the gap for the mainstream adoption of decentralized applications.
NEAR is primarily focused on making it easy for developers to develop DApps and maintain them even as they scale to millions of users. Run on Proof-of-Stake (PoS) called Nightshade.
Unlike other blockchain-based platforms, the NEAR protocol is built from scratch to be the easiest in the world for both developers and their end users while providing scalability and security. necessary to service those users.
NEAR Protocol launched its mainet on April 22, 4.
- NEAR SDK : A complete SDK that includes standard data structures, examples, and testing tools for Rust and AssemblyScript.
- Gitpod for NEAR : NEAR uses Gitpod to create a time-free, integrated experience for developers.
- NEAR Wallet : Reference implementations to work seamlessly with a progressive security model that allows application developers to design a more efficient user experience.
- NEAR Explorer : Support for debugging contracts and understanding network performance.
- NEAR Command Line Tools : A set of simple command line tools that allow developers to easily create, test, and deploy applications from their local environment.
Main features of NEAR Protocol
- Sharding uniformly: NEAR uses a homogeneous sharp analysis method. That means applications scale without having to worry about which segment of them, similar to how applications deploy for Amazon AWS, Azure, or GCP today.
- Asynchronous calls: NEAR contracts use asynchronous calls. So chaining multiple applications or contracts on segments is as easy as calling in one Contracts and complex financial instruments can be created on a large scale.
- Dynamic Resharding: NEAR's dynamic resharding adds new capacity to the network when congestion occurs, keeping prices more stable.
- Contract-based accounts: NEAR's contract-based accounts provide the application with enhanced and flexible permissions so that users don't need to approve every transaction.
- Progressive UX: The account model allows applications to provide progressive UX where users don't even know they're on a blockchain until they've introduced.
- Contract-based interloper: Authorization based on contract. This means that the validator can set flexible terms for token holders to authorize them, which opens up a host of new financial products.
What is NEAR Token?
NEAR is the unility token of the NEAR protocol. The protocol's surrounding foundation and ecosystem is based on the efforts of a large community of participants. NEAR token, distributed to support the launch of this ecosystem.
Basic information about NEAR
- NEAR supply starts at 1.000.000.000 tokens and grows at a maximum rate of 5% per year.
- NEAR transaction fees burned. Hence, at high usage, the NEAR token becomes deflationary.
- NEAR transaction fees are kept low over time as network capacity dynamically expands through sharding.
|Token type||Utility Token|
|Total Supply||1.000.000.000 NEAR|
Distribution of NEAR tokens
- Community Grants, programs 17.20%
- Core Contributors 14%
- Operations Grants 11.40%
- Backers 17.60%
- Foundation Endowment
- 10% Small Backers 6.10%
- Early Ecosystem 11.70%
- Community Sale 12%
Token issuance schedule of NEAR
Circulating supply of each component details:
Community Grants and Programs: The tokens have been released for over 60 months.
Core team: All 4 year lockup are identical among core team members with 12 months after debut.
Prior Backers: Every pre-purchase has a lock time of 12 to 36 months from unlocking to tranfer, with the majority being 24 months.
Prior Fundraising: Fundraising was initially done through convertibility, almost all of which was converted into tokens.
Community Sale: Took place in August 08 due to some difficulties. The distributed amount is over 2020 million tokens. Up to 120 million tokens will be unlocked and the remaining 25 or 12 months linear lock.
Early Ecosystem: Beta program for building initial applications, etc. The deadline is usually 6 or 12 months. One of the unannounced programs contained 30 million 6-month linear lock tokens. Maybe up to 80 million tokens have been unlocked.
Foundation Endowment: This funding section is divided into 2 parts. Part 1, without lock, will probably be deployed with many strategies. Part 2, 24-month linear lock because it is not expected to be accessible in the early days after authorization.
Operations Grants: Expected to be started in the second half of 2020 and early 2021. These tokens lock 60 months linearly.
New Issuance: Demonstrates a 5% growth in token supply.
What is NEAR used for?
- Fees: Fee for transaction processing and data storage.
- Validator node: To run a Validator node on the network by staking NEAR tokens
- Governance vote: Used for administrative votes to determine how network resources are allocated and the protocol's future technical direction.
How does Staking on NEAR work?
All NEAR token holders have the opportunity to earn Staking rewards.
- Validators earn NEAR Token when producing new blocks as a static inflation rate of 4,5% per year.
- A token holder that is not interested in becoming a Validator can stake the Validator's staking pool and also earn a token reward. This encourages token holders to continue engaging with the community and supporting Validator that is keeping the network running.
- The amount of staking rewards a person can earn corresponds to the total amount of tokens staked. Example: If a total of 1000 tokens are staked and you have staked 100 of them. You can earn 10% bonus. If you have a total of 2000 tokens staked and you staked 100 of them, you will only earn 5% of the bonus.
What are the requirements for staking NEAR?
- If you are a Validator, follow the official one NEAR documentatioin to learn about setting up your node. Choose the right hardware configuration and communicate with other NEAR Validators.
- If you are a holder of NEAR Token and want to stake in the validator's staking pool. This can be done from NEAR Wallet or in some cases your custody provider.
You will need NEAR tokens to stake. If you are not an early contributor or investor who has earned a token through a donation, you can also find available NEAR tokens on exchanges. The locked tokens received from community donations are also eligible for staking.
How does the Staking reward work on NEAR?
NEAR Protocol inflation generates almost 5% of new tokens every year. Of which 90% (or 4,5% of the new supply) returned to staking.
There is 1 billion NEAR in the original total supply. It is possible to expect approximately 45 million tokens to be distributed as reward tokens in the first 12 months.
The reward is distributed according to your percentage of the total stake:
- If the protocol has 500 million NEAR tokens staked and you stake 5000 NEAR (0,0001% of total). The protocol will reward you with around 450 newly minted tokens. Or 0,0001% of 45 million, over 12 months.
There are additional factors that affect the exact amount of NEAR rewards you will receive.
Example: NEAR reward is automatically restake, adding up your total stake. Also, if the total stake increased to 700 million, the same 5000 NEAR would now receive 0,0000071% of the reward, or close to 321 tokens.
In addition, NEAR burns the amount of gas spent on transaction fee. So stakr does not get any rewards from the high network usage.
Which wallet to use for staking NEAR?
NEAR wallet is the only wallet supported by the NEAR Core team and the NEAR platform. But there are a number of other community wallets and custody solutions that work on NEAR like Dokia Capital staking application and Moonlet wallet.
To choose a wallet, you will determine how to receive your NEAR:
Some community contributor NEAR early received tokens in the Lockup contract. This means their token balance will be unlocked over time. Only certain wallets like NEAR wallet will support a locked token at this time.
If you have unlocked your token, most wallet providers and custody options should be compatible for you to stake.
Finally, considerations when choosing a wallet provider for staking are:
- Some providers and staking wallets do not allow you to choose pool staking or only support certain pools.
- If there is a specific Validator or pool staking you want, you need to find a wallet that is compatible with that pool.
Are tokens locked during Staking?
Yes, once you stake your tokens in the staking pool:
- You cannot spend or move them in any way.
- To withdraw them, you must first drop the desired amount. Then wait up to four periods for them to be withdrawn to your wallet. Each period is a chain of 43.200 blocks, or almost 12 hours. So you can unlock your staked tokens for a few days.
- A lock period is necessary if you want to unstake to switch money to the new Validator. NEAR wallet provides a clear interface for staking, unstaking, and withdraw.
How to choose a good Validator in NEAR?
NEAR is running on the BFT protocol. So having 33% of offline stakes could stop producing new blocks. The best thing to do when considering which Validator is to divide your stake among different Validators, prioritize the remaining 67%.
Another factor to consider is pool fees. You will also notice that each Validator has a set of pool fees listed. This is the amount of fees that Validators hold to manage their activity. Example: If a 100 token reward is generated, 10% of it will be held by the Validator and 90% will go to the holder of the token that staked that Validator.
So, Fee = 0 is not always good. Becoming a Validator takes time from qualified professionals operating a high-quality infrastructure: It is inherently expensive to maintain. Additionally, Validator may change their fee at any time. So follow the fees in your pools and join the community chat or Validator's mailing list to update.
Staking is not just about the reward, it is also the basis of the security and stability of the NEAR protocol. To avoid concentration, divide your stake between smaller staking pools instead of staking everything to the largest pool. Check the list of all NEAR Validators.
On which exchange are NEAR tokens traded?
What is a NEAR token storage wallet?
Currently only NEAR tokens can be stored using Near wallet. Or store the exchange account where you bought NEAR (remember full security)
Evaluate the potential of NEAR coin
NEAR uses new sharding technology that allows applications to scale while enhancing interoperability. It's important to build complex ecosystems like decentralized finance and the open web. The core account model also allows developers to build applications with unprecedented usefulness.
More than 100 collaborators from around the world have been silently building the technology that is currently underway. NEAR has independent guilds that support distributed communities, partnerships with famous companies, and more than a dozen projects are expected to launch soon after MainNet officially comes into operation.
NEAR is being built by engineers who have in-depth experience in NEAR's complex and scaled transport systems, including two double ICPC world champions, 2 gold medals, one champion Latin American enemies and many other competitive programming finalists.
Co-founder Alex Skidanov gave technical direction to fragmented database company MemSQL, and Co-founder Illia Polosukhin developed the TensorFlow machine learning library as part of Google before they teamed up to build NEAR. .
NEAR partnerships with leading custody providers, wallets and apps that will integrate with the network and make it accessible to people around the world.
As the first part of the content was updated, NEAR Protol launched its mainnet on April 22, 4
Should you invest in NEAR?
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