The NEAR Protocol community approved proposal HSP-029 in a House of Stake vote that ended on Nov. 2, 2026, backing a gradual reduction in the NEAR token’s maximum annual issuance from 2.5% to 1.6%. The proposal’s authors said the change would reduce dilution for holders who do not stake their tokens and slow growth in NEAR’s total supply.

According to the results, 99.97% of participating veNEAR supported the proposal, with turnout of about 62%. Thirty-two participants voted in favor, representing roughly 3.29 million veNEAR.

Issuance reduction scheduled over 24 months

The approved plan calls for the annual issuance rate to decline by about 0.0375 percentage points per month over 24 months, with adjustments made each network epoch.

The distribution of newly issued tokens would remain unchanged. Staking participants would continue to receive 90% of issuance, while the protocol treasury would receive the remaining 10%.

The HSP-029 document projects that daily issuance will fall from about 89,517 NEAR to 57,291 NEAR once the target rate is reached. Issuance over the first two years would be 11.8 million NEAR lower than under the current model.

Over six years, the difference could reach 66.1 million NEAR, equivalent to about 4.36% of total supply compared with the baseline scenario. Estimated gross staking yield would decline from 5.27% to 3.37% if the share of locked tokens remains unchanged.

The proposal also examines the effect on validator economics. Its authors estimate that, once the target rate is reached, 24 of 405 pools may no longer be able to cover operating costs solely from earned rewards.

Review and network upgrade still required

The vote does not immediately change the network’s parameters. The proposal must undergo review by the House of Stake Security Council, followed by a protocol upgrade and its adoption by validators.

The plan also provides for a transition period of about 90 days to allow wallets, cryptocurrency exchanges, custodial services and staking platforms to adapt. The phased issuance reduction would begin only after that period.

SVRN CEO Sal Ternullo authored the proposal. He previously proposed eventually ending new NEAR issuance altogether and moving to a fixed-supply model, but that option was not included in the approved plan and requires separate discussion.

Incrypted reported on the tokenomics proposal on Oct. 2, 2026. At the time, Ternullo attributed the need for reform to the completion of the network’s initial development phase and a reduced need for high issuance to support network security.

The initiative also said SVRN holds more than 55 million NEAR, most of it staked. Ternullo estimated that the issuance reduction could cut the company’s annual income by about 970,000 tokens.

NEAR extended its decline following the proposal’s approval. On Nov. 3, the token traded below $4 after falling about 10% in the previous session, according to the daily NEAR/USDT chart on Binance shown by TradingView.

Source: Incrypted