NEAR Protocol’s governance body, House of Stake, approved proposal HSP-029 on Nov. 2 with about 99.96% support, based on 3.29 million veNEAR in voting power. The measure would gradually lower the protocol’s annual token issuance cap from 2.5% to 1.6% over 24 months, with an average monthly reduction of 0.0375 percentage points. The proposal was introduced by Sal Ternullo, CEO of Nasdaq-listed SVRN, and changes only one protocol parameter while keeping the current allocation split intact: 90% of newly issued tokens would still go to staking participants and 10% to the treasury. The measure still requires approval from the House of Stake Security Council. If cleared, it would be implemented after an approximately 90-day preparation period and once validators complete the required protocol upgrade. Model estimates cited in the proposal say the change would reduce issuance by about 11.8 million NEAR over the first two years and roughly 66.1 million NEAR over six years, compared with the original cap. Once fully in effect, daily issuance is projected to fall from about 89,500 NEAR to 57,300 NEAR.
NEAR Protocol’s governance body, House of Stake, approved proposal HSP-029 on Nov. 2 with about 99.96% support, based on 3.29 million veNEAR in voting power.
Issuance cap would be lowered over 24 months
The proposal would gradually reduce NEAR’s annual token issuance cap from 2.5% to 1.6% over a 24-month period, with an average monthly cut of 0.0375 percentage points.
It was introduced by Sal Ternullo, CEO of Nasdaq-listed SVRN. The proposal changes only one protocol parameter, while leaving the current allocation split unchanged: 90% of newly issued tokens would continue to go to staking participants, and 10% would continue to flow to the treasury.
Security Council approval is still required
The measure still needs approval from the House of Stake Security Council. If approved, it would take effect after an approximately 90-day preparation period and after validators complete the protocol upgrade.
Model estimates point to lower issuance and lower staking returns
According to the model estimates cited, 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, compared with the original issuance cap.
Once fully implemented, daily issuance is expected to decline from about 89,500 NEAR to 57,300 NEAR. Under the assumption of a similar staking participation rate, the gross staking yield is projected to fall from 5.268% to 3.372%, while validator commission income is expected to decrease by 36%.
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