FAQs - Near (NEAR)

Frequently asked questions about Near Protocol
Written by StakeSeeker
Updated 3 days ago

What is Near Protocol (NEAR), and what is it used for?

NEAR is the native token used to pay for transaction fees and act as collateral for storing data on NEAR Protocol’s Proof-of-Stake network. NEAR has established a protocol treasury, which receives 0.5% of the total NEAR supply annually, for the purpose of reinvesting in the further development of the ecosystem.

What are NEAR Protocol staking rewards?

Staking rewards in the form of native blockchain tokens (BAND) are distributed to validators for locking up their cryptocurrencies to a blockchain network to support validator node’s participation in the consensus mechanism and securing the network for a period of time. Refer to the data above for the latest NEAR Protocol staking reward figures.

What are the current use cases of NEAR Protocol?

NEAR protocol’s sharding technology makes it a highly scalable blockchain on which over 800 projects are built spanning across Decentralized Finance (DeFi), non-fungible tokens (NFTs) and Decentralized Applications (DApps).

What are the risks of staking NEAR Protocol?

Like many blockchain protocols, the consensus mechanism used by NEAR Protocol includes a slashing mechanism whereby any validator that misses too many blocks or double signs a block is penalized by the network, slashing the staked amount on that validator and delegators should be cognizant of these risks.

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