NEAR Protocol
Time factors
The protocol has an implicit block time target of 1 second. Actual block times can fluctuate depending on network conditions.
Lifecycle
Must know before staking
Delegation happens on a smart contract. Each validator has its own dedicated staking pool smart contract that helps pool stake.
Rewards are added directly to staking balance.
Advanced topics
Rewards
Rewards come from newly issued tokens and transaction fees.
Inflation rate applied to total token supply. The protocol has a fixed inflation rate of 5% applied to total supply. 10% of this newly issued tokens are sent to the protocol’s treasury. The other 90% is distributed to stakers.
Transaction fees. 30% of all transaction fees are directed to contract creators while the remaining 70% is distributed to stakers.
Factors that impact realized rewards.
Validator performance. Rewards for a validator is reduced by the portion of missed blocks.
Risk
The protocol does not have any penalties or slashing.
Validators
The protocol has a dynamic stake requirement for validators. All validators need to maintain the stake requirement to remain part of the active set.
Resources
NEAR documentation: https://docs.near.org/
NEAR Protocol specification: https://nomicon.io/
NEAR whitepaper, Economics in a sharded blockchain: https://near.org/papers/economics-in-sharded-blockchain/
NEAR explorer: https://explorer.near.org/
Last updated