What is NEAR Protocol?
Summary
NEAR Protocol is a blockchain for applications with readable account names and a design that divides network work across parts of the system. NEAR pays fees and can be staked.
- Readable account names make NEAR apps easier to recognise and use.
- Sharding divides work; NEAR pays for network activity and supports validators.
- Virtune Staked NEAR ETP holds NEAR as collateral and manages staking within the product.
What would someone notice in a NEAR app?
NEAR Protocol is a blockchain designed for applications. An account can have a readable name such as anna.near rather than only a long string of characters. If an app transfers a digital item between two people, the ownership change is recorded on the network1. A readable account makes that action easier for a person to recognise.
NEAR also uses sharding: work is divided for parallel processing1 instead of requiring every part of the network to do all the same work. The aim is to support more app activity as usage grows. A user's actual experience still depends on the app and network conditions.
What does NEAR pay for?
Network work is priced in NEAR2, even when an app moves some other digital asset. NEAR can also be delegated to validators3 that help confirm transactions. A delegator does not need to run a node, but rewards depend on network rules and validator performance.
The account name, the app's own content and NEAR's fee and staking roles are separate pieces of the experience. An app's popularity alone does not determine the asset's market price.
NEAR directly or through an ETP
A direct NEAR holder can pay network fees, choose custody and take part in staking. Virtune Staked NEAR ETP instead offers NEAR price exposure through an exchange-traded security. It is physically backed with NEAR held as collateral4; the investor owns the security, not NEAR in a personal wallet.
Staking is managed within the ETP. Under its Final Terms, investors receive up to 75% of staking rewards, capped at an annual rate5 of no more than 4% before the investor fee. This is a cap; actual rewards may be lower or absent. Rewards vary and are added within the product rather than paid out as account interest.
The product is listed on Nasdaq Stockholm.
Costs when buying Virtune Staked NEAR ETP
| Cost | Charged by | When |
|---|---|---|
| Brokerage commission | Broker | On every purchase and sale |
| Difference between bid and ask price | Market | On every trade |
| Management fee, 1.49% per year | Issuer | Ongoing, from the product's value |
| Currency conversion | Broker, if applicable | If the product trades in another currency |
Risks to understand
NEAR's price can fall sharply. Staking rewards may vary or be absent and need not offset a price fall. Direct holding requires wallet or custody decisions; the ETP adds issuer, custody and exchange-trading risks. Crypto-assets can lose substantial value6.
Related product
Sources
- NEAR Protocol: What is NEAR?
- NEAR Protocol: Nearcore economics
- NEAR Protocol: Validator Staking
- Virtune Investor Relations: Collateralization Methodology
- Virtune: Final Terms: Virtune Staked NEAR ETP, 2 April 2026
- EBA, EIOPA and ESMA (the European Supervisory Authorities): EU financial regulators warn consumers on the risks of crypto-assets
