Story Highlights

• DWF Labs currently holds 11 million NEAR tokens, with over half staked to secure the protocol.
• The NEAR tokenomics entail 5% annual inflation, which some investors criticize.

Andrei Grachev, a top executive at DWF Labs, has challenged the core developers at Near Protocol (NEAR) to reduce the token’s inflation from 5% to 2.5%. In an X post on Wednesday, Grachev urged the developers to consider this move to enhance the project’s long-term prospects.

Grachev reminded the core founders that DWF Labs currently holds 5 million NEAR tokens and has staked an additional 6 million tokens. To sweeten the proposal, he mentioned that DWF Labs would purchase an additional 10 million NEAR tokens.

Bowen Wang, a developer at Near Protocol, welcomed the idea of reducing the token’s inflation but emphasized that the final decision rests with the community. The current inflation is part of the incentive plan to attract more holders to stake NEAR tokens and secure the protocol.

> “I think it could be a good idea to reduce inflation to make the tokenomics more sustainable, but it is up to the community to decide”
> — Bowen Wang (@BowenWang18) June 11, 2025

Closer Look at NEAR Price Action

Amid the highly anticipated altseason 2025, driven by rising institutional demand and the potential reversal of Bitcoin dominance, NEAR price has shown bullish sentiment. The mid-cap altcoin, boasting a fully diluted valuation of about $3.2 billion and a 24-hour average trading volume of about $186 million, gained over 5% in the last seven days, trading at about $2.57 at the time of writing.

> “Super interesting level for $NEAR here.
> Confluence of both diagonal and horizontal levels.
> After the double bottom, if we break here, it would be a super positive sign for a bullish trend resumption.
> Time to pay attention!”
> — Sjuul | AltCryptoGems (@AltCryptoGems) June 11, 2025

From a technical analysis standpoint, the NEAR price is on the verge of a major breakout if it consistently closes above the established falling logarithmic trend. In the daily timeframe, NEAR price has formed a potential inverse head and shoulders pattern, indicating bullish sentiment in the near term.

The bullish sentiment is further supported by the weekly MACD line that recently crossed the signal line, alongside growing bullish histograms.