NEAR's House of Stake passed HSP-029, which lowers the network's maximum annual issuance rate from 2.5% to 1.6% over 24 months. The change still needs Security Council review, a 90-day grace period, and a validator upgrade before it becomes binding.
NEAR Protocol's House of Stake governance body has approved a proposal to lower the maximum annual issuance rate from 2.5% to 1.6% over 24 months. HSP-029 passed the ballot on Monday with overwhelming support.
How the issuance ramp works
The proposal keeps the existing 90/10 split of newly issued tokens between staking participants and the protocol treasury. It changes only that single protocol parameter and would not alter the emissions mechanism.
Once implemented, the ceiling declines each epoch linearly at roughly 3.75 basis points per month, reaching 1.6% in the 24th month. The goal is to slow dilution and reduce long-term sell pressure on the NEAR token, as the network said its bootstrapping phase is largely over.
Why NEAR wants lower issuance
The proposal noted that the active validator set is oversubscribed. It said that continued issuance at the prior rate transfers value from the roughly 57% of supply that is not staked to those who stake, while adding sell pressure.
NEAR described the vote in an X post as a public vote on a core parameter. According to NEAR: "lower long-term issuance and a supply schedule anyone can verify."
Projected supply and yield effects
The proposal estimates the ramp would avoid roughly 11.8 million NEAR of issuance over the first two years and 66.1 million over six years. That would leave supply about 4.36% smaller than under the existing 2.5% ceiling.
Daily issuance would fall from approximately 89,500 NEAR to 57,300 NEAR at full implementation. Gross staking yield is projected to decline from 5.268% to 3.372% over the same period, assuming the participation rate measured in September remains unchanged.
For the change to take full effect, the House of Stake Security Council must review the result before ratification. A 90-day grace period follows, after which validators must adopt a protocol upgrade. NEAR previously cut the maximum issuance from 5% to 2.5% in October 2025.
Source: The Block
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