NEAR could cut new token issuance by more than a third

A new push to tighten NEAR's token supply

@sal_ternullo, CEO of Nasdaq-listed @svrn_ai, has put forward a proposal to reduce @NEARProtocol's maximum annual inflation rate from 2.5% to 1.6%, phased in gradually every epoch over 24 months. Under the plan, staking yield would fall from roughly 5.4% to around 3.5%. A vote through the House of Stake governance body is expected next week.

The proposal is the latest step in an ongoing effort to tighten $NEAR's token economics. NEAR Protocol previously reduced its inflation rate from 5% to 2.5% in October 2025, a move that generated considerable debate about how the network reaches and enforces major decisions. Ternullo's new proposal would push issuance down further still.

The rationale laid out in the governance forum is straightforward. At 2.5%, the protocol is currently adding roughly 89,500 new $NEAR to supply every day, yet 58.7% of NEAR is not staked, meaning the majority of holders are being diluted and receiving nothing in return. Over a six-year horizon, the proposed reduction would avoid approximately 66 million NEAR of new issuance, equivalent to around $329 million at current prices.

Beyond the near-term numbers, Ternullo has flagged a longer-term ambition: steering NEAR toward a fixed token supply over time. He has described this as a directional goal rather than a formal proposal, but it signals how he views the protocol's trajectory.

SVRN's stake gives its voice weight

The proposal carries institutional weight. SVRN currently holds more than 55 million $NEAR tokens, making it one of the largest single holders in the ecosystem. That position gives its governance views real consequence for any vote outcome. Notably, Ternullo disclosed that the issuance cut would reduce SVRN's own staking revenue by roughly 970,000 NEAR per year.

SVRN is the only Nasdaq-listed treasury company built around NEAR, and belongs to a new class of public companies that give investors direct, single-asset exposure to a digital asset network. Its stated target is to accumulate toward 10% of NEAR's total supply.

Early reactions on the NEAR governance forum are mixed. Supporters argue that lower inflation reduces sell pressure and better aligns incentives, while critics are likely to weigh the impact on staking returns and validator economics. A House of Stake vote is not the final step either: validators would still need to adopt the change through the normal protocol upgrade process, the same path taken during the 2025 halving. The upcoming vote will provide the first formal read on where the community stands.

SourcesNEAR Governance Forum: Reducing Issuance to 1.6% and the Path to a Fixed SupplyNasdaq: SVRN, Inc. Completes Its Corporate TransformationThe Defiant: NEAR Protocol Halving Upgrade and Community Vote