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NEAR Foundation’s Bold Move: Streamlining for a More Impactful Future (crypto-news-flash)

NEAR Foundation

  • NEAR Foundation, overseeing the NEAR protocol, cuts 40% of its workforce, affecting 35 jobs, to streamline operations and enhance efficiency.
  • The move follows feedback from the NEAR Foundation Council about sluggishness and overcommitment to multiple projects.

The NEAR Foundation, the non-profit entity behind the NEAR protocol, revealed in an official announcement its intention to significantly reduce its workforce, marking a strategic shift towards a more streamlined approach to achieving its goals.

Workforce Realignment for Strategic Impact

In the blog, NEAR protocol has announced a reduction of its workforce by 40%, impacting 35 jobs. This decision comes as a response to feedback from the NEAR Foundation Council, citing concerns about the organization’s effectiveness and its tendency to move too slowly while juggling multiple projects simultaneously.

The NEAR Foundation has witnessed substantial progress in recent times. In 2023, the NEAR Protocol reached new heights, becoming the home to three of the top ten web3 applications. Furthermore, it garnered a record-breaking user base and strengthened its collaboration with the Ethereum community.

Consolidation for a Sharper Focus

NEAR Foundation’s CEO, Illia Polosukhin, disclosed this development in a blog announcement on January 11. The affected areas primarily include the marketing, communication, and business development teams. The NEAR Foundation Council’s evaluation led to the conclusion that streamlining the core team and focusing on a narrower set of higher-impact activities would better serve the organization’s goals.

Polosukhin reassured that the engineering team would continue its regular operations. Additionally, NEAR Foundation pledged its commitment to supporting the employees affected by these layoffs, providing them with the necessary resources to navigate their career transitions.

While undergoing this restructuring, NEAR Foundation aims to maintain its robust financial position. Polosukhin affirmed that the foundation’s treasury remains well-managed and financially sound. Currently, it holds over $285 million in fiat currency, boasts assets exceeding $1 billion in NEAR tokens, and manages $70 million in investments and loans.

This strong financial foundation allows NEAR Foundation to adapt to the cryptocurrency industry while executing a more focused approach to its mission.

NEAR Token Price Surges

Simultaneously, the NEAR token has surged in value, capturing the attention of investors and enthusiasts alike. In the past 24 hours, the NEAR token has seen a remarkable 19.99% increase, with its current trading price at $3.77. In the past week, it has witnessed a modest 0.87% upswing, and the monthly performance is even more impressive, with a 56.73% surge.

The market capitalization of the NEAR token has also experienced significant growth, rising by 19.95% to reach a total of $3.78 billion. Trading volume has followed suit, surging by 60.28% and hitting $360million.

A Trend in the Cryptocurrency Industry

The decision by NEAR Foundation to reduce its workforce is emblematic of a broader trend in the cryptocurrency and blockchain space. Numerous firms have recently undergone similar reorganizations, often involving layoffs, as they strive to optimize their operations, enhance their offerings, and refine their strategies.

In November 2023, the prominent NFT marketplace OpenSea made headlines by downsizing its workforce by 50%. This move was part of OpenSea’s “2.0 strategy,” emphasizing community engagement, product development, and reliability as key focus areas.

In October of the same year, Parity Technologies, a leading blockchain infrastructure provider behind the Polkadot ecosystem, also experienced organizational changes. Although rumors swirled regarding potential layoffs affecting around 300 employees, the company clarified that any adjustments to its workforce would be gradual and aligned with its new decentralized approach, which involved various entities funded by the ecosystem.


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