NEAR Protocol’s governance body, House of Stake, approved proposal HSP-029 with about 99.96% support, backed by voting power representing 3.29 million veNEAR. The proposal would gradually reduce the protocol’s annual token issuance cap from 2.5% to 1.6% over 24 months, with an average monthly cut of 0.0375 percentage points. It was introduced by Sal Ternullo, CEO of Nasdaq-listed SVRN, and changes only one protocol parameter while keeping the current allocation split unchanged: 90% of newly issued tokens would continue to go to staking participants and 10% to the treasury. The measure still requires approval from the House of Stake Security Council, followed by an approximately 90-day preparation period and validator protocol upgrades before taking effect. Model estimates cited in the proposal show that, using the original issuance cap as a baseline, the change would reduce issuance by about 11.8 million NEAR in the first two years and about 66.1 million NEAR over six years. Once fully implemented, daily issuance is projected to fall from about 89,500 NEAR to 57,300 NEAR. Under a similar staking participation assumption, gross staking yield is expected to decline from 5.268% to 3.372%, while validator commission revenue is projected to drop 36%.
According to ChainCatcher, NEAR Protocol governance body House of Stake approved proposal HSP-029 with about 99.96% support, with voting power totaling 3.29 million veNEAR.
The proposal would gradually lower the annual token issuance cap from 2.5% to 1.6% over 24 months, an average reduction of 0.0375 percentage points per month.
HSP-029 was introduced by Sal Ternullo, CEO of Nasdaq-listed SVRN. It changes only one protocol parameter, while leaving the current distribution split unchanged: 90% of newly issued tokens would continue to go to staking participants and 10% would go to the treasury.
The proposal still needs approval from the House of Stake Security Council. It would then be implemented after an approximately 90-day preparation period and once validators complete the protocol upgrade.
Model estimates show that, based on the original issuance cap, the change would reduce issuance by about 11.8 million NEAR over the first two years and by about 66.1 million NEAR over six years.
After full implementation, daily issuance is expected to decline from about 89,500 NEAR to 57,300 NEAR. Assuming a similar staking participation rate, gross staking yield is projected to fall from 5.268% to 3.372%, and validator commission revenue is expected to decrease by 36%.
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