NEAR House of Stake approves HSP-029 to lower annual token issuance cap over 24 months
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%.
