The Near Foundation, responsible for the development of the NEAR protocol, a layer-1 blockchain, has announced a significant reduction in its workforce. As of January 11, the foundation decided to cut 40% of its staff, affecting 35 employees primarily from marketing, business development, and community teams. This decision follows feedback indicating that the foundation’s operations were not as effective as they could be, with criticisms pointing towards a lack of focus and an attempt to undertake too many initiatives simultaneously.
Despite these layoffs, the Near Foundation’s financial situation appears stable. The foundation’s treasury holds over $285 million in fiat currencies, 305 million NEAR tokens (valued at over $1 billion), and $70 million in investments and loans. This robust financial position suggests that the foundation is well-equipped to continue supporting the growth, development, and further decentralization of the NEAR Protocol and its ecosystem, as stated by CEO Illia Polosukhin.
The announcement comes after a period of significant growth for the Near Protocol under the leadership of former CEO Marieke Flament, who resigned on September 21, 2023. During Flament’s tenure from 2021 to 2023, the Near Foundation saw substantial increases in its treasury balance, user engagement, and media presence. The treasury balance grew to 330 million NEAR tokens, equivalent to $350 million at the time of her resignation. The daily active user count on the Near Protocol surged from 50,000 to 3 million, and the foundation’s Twitter followers increased from 200,000 to over 2 million. Additionally, the Near Protocol gained significant media attention, with more than 2,000 pieces of press coverage.
The Near Foundation has committed to supporting the affected employees during this transition, assisting them in finding new opportunities within the NEAR ecosystem, the broader Web3 industry, and beyond. This restructuring marks a pivotal moment for the foundation as it refocuses its efforts on a more concentrated set of objectives to enhance its impact and efficiency in the blockchain and cryptocurrency space.
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