#What economic changes are happening at NEAR Protocol?
NEAR Protocol has made significant alterations to its economic framework. The protocol's governance body, known as House of Stake, recently approved a proposal to completely eliminate the developer gas rebate. This decision was reached between June 20 and June 27, 2026. It is expected that starting with a nearcore upgrade set for August 2026, all eligible execution fees on the NEAR network will now be burned instead of being partially refunded to smart contract developers.
NEAR's co-founder confirmed the decision, indicating this complete fee burn is a positive move for the NEAR token and its economic outlook over the long term.
#What was the developer gas rebate and why eliminate it now?
The developer gas rebate was a mechanism that allowed smart contract owners to reclaim a portion of the gas fees their contracts generated. Over time, however, the value of these rebates dwindled sharply, decreasing from an average of approximately 27.6 NEAR in June 2025 to mere amounts ranging from 1 to 5 NEAR per month by 2026.
The proposal, drafted by Anton Astafiev, argued that the rebate had lost its significance. As a result, the decision to eliminate it experienced minimal opposition during discussions.
#What does the implementation timeline look like?
This change will coincide with the scheduled nearcore v2.14 upgrade, which is set to launch around August 2026. Until this upgrade is executed, the current rebate process will remain operational.
#How do the new deflationary mechanics work?
Under the previous model, a portion of execution fees—specifically, 30%—was returned to contract developers. With the new approach, all eligible fees will be burned. This adjustment will decrease the overall supply of NEAR in circulation permanently.
#What implications does this have for developers and investors?
For developers utilizing NEAR, those who relied on gas rebates as part of their revenue strategy will see this income source vanish with the upcoming nearcore v2.14 upgrade. Given that most projects were receiving minimal rebates, the community acknowledges this change as a transition towards more sustainable business practices.
The proposal was passed with widespread approval, emphasizing its acceptance within the community. It is crucial to monitor the nearcore v2.14 upgrade closely. The data regarding the on-chain burns in the weeks following this implementation will serve as a crucial indicator of the economic impact resulting from the removal of the rebate.