NEAR Protocol Launches New Staking Mechanism at 7% Yield

NEAR Protocol Launches New Staking Mechanism

NEAR Protocol announced the launch of a new staking mechanism on December 20, 2025, offering a 7% annual yield to participants. This update aims to increase user engagement and liquidity within the NEAR ecosystem.

The Announcement/Development

The new staking mechanism allows users to stake their NEAR tokens directly through the protocol's official wallet, simplifying the process. The development team, led by NEAR's CTO, Illia Polosukhin, implemented this feature to enhance the user experience. The rollout began on December 20, 2025, with full integration expected by January 15, 2026. This update includes new smart contract functionalities designed to automate staking rewards distribution.

Why This Matters

The new staking mechanism addresses the issue of low staking participation, which has been around 30% of total supply. By offering a competitive 7% yield, NEAR aims to attract more users and increase the total value locked (TVL) in its ecosystem. The market opportunity for staking services is estimated at $10 billion, providing NEAR with a significant growth avenue. Users benefit from a streamlined process and higher returns, while developers can leverage the increased liquidity for decentralized applications (dApps).

Market Response and Outlook

Following the announcement, NEAR's token price increased by 5% to $3.50, reflecting positive market sentiment. The community has responded enthusiastically, with over 1,000 new staking participants in the first 24 hours. Upcoming milestones include the integration of the staking mechanism with major DeFi platforms like DeFi Llama by February 2026. This development positions NEAR to enhance its role within the broader blockchain ecosystem, particularly in DeFi and staking services.

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