Read this article on bsc.news NEAR Protocol's (@NEARProtocol) House of Stake, the network's onchain governance body, has approved a proposal to lower the maximum annual issuance of $NEAR from
NEAR Protocol's (@NEARProtocol) House of Stake, the network's onchain governance body, has approved a proposal to lower the maximum annual issuance of $NEAR from 2.5% to 1.6%. The measure, known as HSP-029, will be phased in over 24 months, with the issuance ceiling stepping down each month.
The proposal estimates that the change could prevent 66.1 million NEAR from being issued over six years. That would leave total supply about 4.36% smaller than under the current 2.5% ceiling, according to Crypto Economy. Over the first two years, the proposal projects about 11.8 million fewer tokens, as reported by CoinCentral.
The ceiling would fall by roughly 3.75 basis points each month until it reaches 1.6% in month 24, according to proposal estimates cited by KuCoin News. The same report says daily issuance would drop from about 89,500 NEAR to 57,300 NEAR once implementation is complete.
The proposal leaves the existing distribution unchanged. Stakers will continue to receive 90% of new issuance, while the protocol treasury receives 10%, CoinCentral reported. NEAR previously lowered its maximum issuance from 5% to 2.5% in October 2025, so HSP-029 continues that direction without setting a fixed token supply.
The vote drew close to unanimous support. CoinCentral put approval at 99.97% of participating voting power, while TokenPost reported the figure as 99.9%.
The vote does not change the network on its own. The House of Stake Security Council must review the result before ratification, and validators must then adopt a protocol upgrade before the new ceiling becomes binding. A grace period of about 90 days follows ratification, according to FinanceFeeds. TokenPost reported that the Security Council has 14 days to veto the proposal.
Lower issuance also affects stakers. TokenPost reported that the plan would reduce projected gross staking yields to 3.3% from 5.2% by the end of the transition. Supporters argue the cut reduces dilution for holders who do not stake their tokens.
NEAR traded at $3.82 on Tuesday morning, down about 7%, according to TokenPost, even after the vote passed.
Crypto Economy: NEAR Governance Approves HSP-029 to Cut Issuance to 1.6%TokenPost: NEAR Falls 7% After Vote to Reduce Token Issuance PassesFinanceFeeds: NEAR Holders Vote to Cut Token Issuance Cap to 1.6%
