Near Foundation: Crypto Bear Market Causes $200M Dip
At the end of Q2 2023, the Near Foundation, the organization behind the layer-one blockchain Near Protocol, experienced a significant decrease in its treasury. As per the recent reports, the treasury value dropped to $900 million, with the fall in the price of NEAR tokens – from $1.99 to $1.38 – being the main contributor to this decrease.
Near Treasury Breakdown
The July 10 report details the Near Treasury to currently comprise of $349 million in fiat, 315 million NEAR tokens, and $90 million in loans and investments. In comparison to Q1’s $1.1 billion, there’s a clear $200 million decline. In Q2, $16 million and 1 million NEAR tokens were distributed to the ecosystem. Despite the market’s turbulence, the Near Foundation is persistent in its prudent treasury management efforts. Developers commented on the situation:
“The NEAR Foundation has continued to adopt a highly responsible approach to treasury management in order to minimize the risk of loss in a turbulent market, while continuing capital deployment to fulfill its mission. Exposure to non-NEAR assets therefore has been limited, with fiat reserves held in highly rated Swiss bank accounts.“
Adapting to Market Challenges
In response to market challenges, such as the lawsuits filed against Binance and Coinbase by the U.S. Securities and Exchange Commission, the Near Foundation has pivoted its focus towards three primary strategies:
- Enhancing its blockchain operating system
- Continuing to build its decentralized ecosystem
- Onboarding Web2 users to Web3
Looking Ahead: Near’s Q3 Strategies
Throughout Q2, the Near ecosystem reported having 1.1 million monthly active accounts. Moving into Q3, the Near team intends to grow partnerships and support projects within the Near Horizon ecosystem. Near Protocol had previously allocated an $800 million ecosystem fund in Q4 2021. This fund is divided into decentralized finance grants, foundation grants, startup funds, and funds for regional hubs. With these strategies, the Foundation aims to foster ecosystem growth and manage treasury effectively amid challenging market conditions.
