The NEAR token is the sole medium for paying gas fees on the NEAR Protocol, ensuring direct value transfer for transaction processing
[1] = ƒ(transaction_volume, average_gas_fee)
transaction_volume — represents the total volume of transactions processed by the NEAR networkaverage_gas_fee — reflects the typical cost per transaction for utilizing the network, commonly known as gas feesNEAR has long since implemented fee burning: 70% of all the transaction fees are burnt, thereby engendering deflationary appreciation of all NEAR remaining in circulation
[21] = ƒ(token_extant, token_burnt, token_generated)
token_extant — the amount of NEAR in existencetoken_burnt — the amount of NEAR burnt in a given timeframetoken_generated — the amount of NEAR minted in a given timeframeAs stated elsewhere, 70% of all the gas fees of NEAR are burnt. The other 30%, however, constitute developer incentives because they are routed to the account associated with the smart contract that generated the fee expenditure.
[22] = ƒ(fee_volume)
fee_volume — the volume of fees generated by a particular contract over a given timeframeIn order to receive develper incentives, one has to deploy a contract so that it may start generating fee throughput.
[82] = binary
NEAR's PoS consensus protocol requires that every validator stake at least 25,500 $NEAR. These tokens are not only exposed to possible unmitigated depreciation due to a required immobilisation period, but are also alienable in case of malfeasance by the validator. Delegation of staked tokens is also enshrined natively.
[71] = ƒ(staking_period, amount_staked, price_at_staking)
staking_period — the duration of the lock-up periodamount_staked — the amount of tokens locked up by the userprice_at_staking — the price of the locked token position at the moment of locking; defines the locked value together with the lockup periodHaving entered the block validator active set, the user must thereafter produce and validate blocks and also produce chunks for a given shard.
[81] = binary
The user, if he is unable or unwilling to run a validator, may still delegate stake to an extant validator in exchange for a share of rewards.
[83] = ƒ(validator_chosen, all_validators)
validator_chosen — stake and uptime of the chosen validatorall_validators — global stakes and uptimesUncommonly enough, deployment of a smart contract on NEAR requires payment for the required storage in the form of so-called storage staking. The account that owns a smart contract must stake tokens according to the amount of data stored in that smart contract, effectively reducing the balance of the contract's account. This constitutes a softer form of alienation, since alienation is only conditional, but it still exposes the token to risks of depreciation. Storage staking is priced in an amount set by the network, which is set to 1E19 yoctoNEAR per byte, or 100kb per NEAR token.
[72] = ƒ(staking_period, amount_staked, price_at_staking)
staking_period — the duration of the lock-up periodamount_staked — the amount of tokens locked up by the userprice_at_staking — the price of the locked token position at the moment of locking; defines the locked value together with the lockup periodOnly the top 100 validators are admitted as block vlaidators, responsible for producing and validating blocks, as well as producing chunks. Under normal circumstances, each validator is assigned to a single shard, for which it produces chunks.
[41] = ƒ([71], all_stakes)
all_stakes — all the users' stakesChunk validators do not track shards. Their responsibilities are focused solely on validating and endorsing chunks.
[84] = binary
Block & Chunk producers (with sufficient uptime of at least 90%) are guaranteed a minimum annual reward of 4.5%. If less than 100% of the network’s tokens are staked, validators have the potential to earn even higher annual rewards. Rewards are distributed per epoch — every half a day.
The details on reward APR are given at https://www.near.org/blog/near-protocol-economics.
[23] = ƒ([81], stake_rate, uptime)
stake_rate — portion of network tokens stakeduptime — the validator's uptimeLike block and chunk producers, chunk validators are guaranteed a minimum of 4.5% annual rewards. If less than 100% of the network’s tokens are staked, chunk validators may earn even higher rewards.
The details on reward APR are given at https://www.near.org/blog/near-protocol-economics.
[24] = ƒ([84], stake_rate, uptime)
stake_rate — portion of network tokens stakeduptime — the validator's uptimeDelegators are entitled to a proportional share of the validator's rewards, less the validator's commission.
[25] = ƒ(validator_income, stake_portion, commission_level)
validator_income — reward due to the delegated validatorstake_portion — the portion of the validator's stake due to this delegatorcommission_level — validator-set commission levelEven chunk validators are subject to stake requirement dynamicity that generally prunes the active set. The minimal validator stake, which gives the cutoff for chunk validators, is set at the greater value of 25.500 NEAR or the value of the 300-th greatest validator proposal.
[42] = ƒ(validator_proposals)
validator_proposals — the totality of the valdiator proposals