NEAR governance backs 24-month issuance cut to 1.6%

NEAR’s House of Stake approved a proposal on Nov. 2 to lower the network’s maximum annual token issuance from 2.5% to 1.6% over 24 months, setting a gradual path to slower supply growth if validators adopt the required upgrade. The proposal, HSP-029, changes the issuance ceiling while preserving the existing split of new tokens: 90% for staking participants and 10% for the protocol treasury. The report by The Block says the vote passed with overwhelming support.

How would the issuance cut work?

The ceiling would move down linearly, one epoch at a time, over two years. The proposal describes the pace as roughly 3.75 basis points per month, reaching 1.6% in month 24. An epoch is a unit of time used by the network to process protocol changes and validator activity. That means the rate would adjust in small steps rather than drop all at once.

The HSP-029 proposal on NEAR’s governance forum says the change is limited to one protocol parameter. It does not redirect staking rewards or replace the emissions mechanism. Think of it as lowering a faucet’s maximum flow gradually: new NEAR would still be issued and divided the same way, but the allowed rate would shrink over time.

What changes for stakers and other holders?

Newly issued NEAR helps fund staking rewards, so a lower ceiling also means lower projected gross staking yield if the share of tokens staked stays the same. The Block reports a projected decline from 5.268% to 3.372% by the end of the ramp, based on a September staking participation rate. Those figures are estimates, not guaranteed returns.

The proposal estimates that the schedule would avoid about 11.8 million NEAR in issuance over two years and 66.1 million over six years compared with keeping the 2.5% ceiling. That would slow the addition of new tokens to supply. It would also reduce the stream of newly issued tokens available for staking rewards.

When could the new ceiling take effect?

The vote alone does not change the live protocol setting. The House of Stake Security Council must review the result, then a 90-day grace period follows. Validators must adopt a protocol upgrade for the new parameter to become binding. The proposal says activation would start the per-epoch ramp, with the 1.6% target reached after 24 months.

Until those steps are complete, the existing ceiling remains in place. The vote approves a schedule for a possible change; it does not itself begin reducing issuance.

Sources

• report by The Block — theblock.co
• HSP-029 proposal on NEAR’s governance forum — gov.near.org