Tokenomics Review made by Same at 19 Apr 2022
Near Protocol Review and SVET Rating
SVET.Tokenomic (Sustainability – Value – Engagement – Transaction)
Sustainability: Since Near Protocol is a smart contract-enabled blockchain that aims to be the next generation platform for decentralized applications (DApps) with a unique scaling solution, this project has one native cryptocurrency of the same name – NEAR. This cryptocurrency operates on the Proof of Stake (PoS) consensus protocol and is used to store data on the network, as well as to carry out transactions on the Near Protocol platform. In addition, thanks to NEAR, you can run decentralized applications, or use cryptocurrency as governance tokens that allow you to vote on decisions regarding the future of the site in question . Also, it is important to mention the possible launch of our own stablecoin of the project called USN. Despite the fact that there was no official announcement, one of the users of the Near platform found a mention of a token with a corresponding ticker in the interface of the Ref Finance protocol and shared this information on his Twitter page . Thus, it is likely that the launch of the USN stablecoin can be expected soon.
At this stage, we will analyze the stability of the Near Protocol economy, by analyzing the price of the project currency on the crypto market. According to CoinMarketCap, at the time of writing, NEAR is trading at $15.77. The market capitalization is estimated at $10.613 billion, the market capitalization at full issue is at the level of $15.77 billion. The total number of issued tokens is 1 billion, of which 673 million are circulating on the market, which is equivalent to 67% of the total number of coins . Each year, no more than 5% of tokens can be released to the market, that is, the issuance limit is 50 million. It is important to clarify that 90% of such emissions go to pay rewards for Near network validators, and the remaining 10% go to the Near fund. Foundation, which deals with the management of money necessary to maintain the work of the project and funding issues in general . As of April 15, the daily trading volume is $788.26 million. In terms of capitalization, NEAR ranks 18th in the CoinMarketCap rating .
Now let's analyze the NEAR cryptocurrency price rate. At the time of launch in October 2020, the minimum price per token was $1.05. However, the daily trading volume on that day
(October, 14) amounted to almost $95 million, on the basis of which we can conclude that the project was in demand from the crypto community immediately from the moment it was launched. Further on the chart, you can observe high price volatility with periodic sharp ups and downs, however, this behavior is inherent in almost all cryptocurrencies, which is a feature of this type of financial asset. Nevertheless, over the entire period of prices, i.e. in the long term, there is a systematic growth of NEAR. In turn, the maximum historical price of the token was $20.6, and the minimum was $0.56 .
Thus, we can state the fact that today the project is quite popular among users, as evidenced by various indicators of its own cryptocurrency (including high daily trading volumes, the rapid growth of the coin rate, etc). It is also important that the project in question has had several successful investment rounds since the beginning of 2022: during the first three, more than $ 180 million was raised from well-known venture funds , and thanks to the fourth, Near will receive $ 350 million from the Tiger Global hedge fund .
As a result, we can conclude that the economics of the Near Protocol is stable, the platform is constantly evolving and looking for new investors to attract more and more funding. We can say that there is a significant potential for growth. The Sustainability rating is b+.
Value: let's analyze the future value of the project within 3-5 years. Analysts believe that Near Protocol is a promising project that may become even more in demand in the next few years. Moreover, the price of the NEAR cryptocurrency managed to overtake analysts' expectations, but this was probably due to the rise of the entire crypto market. Also, it cannot be denied that the general market conditions greatly affect all cryptocurrencies, including NEAR. In addition, high competition in the field of smart contracts can also negatively affect the price of NEAR, however, the project under consideration has significant advantages compared to others: the main one is the almost zero transaction cost and high speed of their processing, which will be discussed in more detail below . So far, we can calculate the ratio of the minimum and maximum price of the token to give an estimate and as a result we will get an ATH/ATL ratio equal to 36, which gives us the Value rating is b+ level.
Engagement: let's analyze the growth prospects of the Nera Protocol user base. At the moment, the information posted on the official website of the project indicates that more than
1 million accounts are registered on the platform, and the number of active users per month is estimated at tens of thousands, in particular, more than 83 thousand users . We can clearly see a good growth potential for the user base, which will expand every day of the existence of the project, moreover, interest in cryptocurrencies and startups in general is growing over time.
Consider the exchanges where users can purchase the NEAR cryptocurrency. So, about
60 exchanges are represented on the CoinMarketCap portal, among the most popular are Binance, KuCoin, Gate.io, Huobi Global and OKX . As we can see, the NEAR cryptocurrency is quite popular, since it can be purchased on a variety of different crypto exchanges, which one specifically is solely the user's business.
To evaluate this block, we will use statistics regarding the number of holders of the NEAR cryptocurrency. I managed to find information about 18.5 thousand wallet addresses of holders at the time of writing the review . So, the Engagement rating is set to b+.
Transaction: consider the process of conducting transactions NEAR. At the moment, cryptocurrency is used in various scenarios, however, we will refer to the main ones: transactions on the exchange, transactions on the Near Protocol platform itself, and we will separately allocate transactions as a reward to network validators.
Regarding commission fees, it is important to clarify that they are practically minimal, at the same time, 70% of the commissions are burned, and 30% are sent to the developers of the smart contract in which the transaction occurred. However, the amount of the commission depends on the number of daily transactions in the network (if the number of transactions exceeds 1 billion, then the commission will be zero). However, at the moment Near Protocol processes approximately 1 million transactions per day , which determines the Transaction rating at the level a.
Rating: b+ / b+ / b+ / a
1. Overview of NEAR Protocol — platforms for dApps and Web 3.0
https://media.si g en.pro/reviews/9257
2. Twitter: ResDegen https://clck.ru/f4G M r
3. CoinMarketCap : NEAR Protocol
4. TradingView : NEAR/ TetherUS
5. CrunchBase: NEAR Protocol https://www.crunchbase.com/organization/near-0565
6. Yahoo: Near Protocol Raises $350M https://clck.ru/f4GPa
7. NEAR: Community https://near.org/community/
8. CoinCarp : NEAR Protocol https://www.coincarp.com/currencies/nearprotocol/richlist/
9. NEAR: The Main Page https://near.org/