TLDR
- NEAR Protocol’s House of Stake approved HSP-029 with 99.97% support from participating voting power.
- The proposal will gradually reduce maximum annual NEAR issuance from 2.5% to 1.6% over 24 months.
- The network will maintain its existing allocation of 90% of new tokens to stakers and 10% to the treasury.
- The proposal projects 11.8 million fewer NEAR tokens issued over two years and 66.1 million fewer over six years.
- Estimated gross staking yields could decline from 5.27% to 3.37% once the new issuance target is reached.
NEAR Protocol’s House of Stake approved HSP-029 on November 2 to cut maximum annual NEAR issuance from 2.5% to 1.6%. The reduction would unfold over 24 months, not immediately.
The vote drew support from 99.97% of participating veNEAR. About 62% of eligible voting power took part, with 32 accounts supporting the proposal.
NEAR Protocol Sets Gradual Issuance Schedule
Under HSP-029, the annual issuance ceiling will fall roughly 0.0375 percentage points monthly. Smaller adjustments will occur each network epoch until the rate reaches 1.6%.
The plan leaves token distribution unchanged. Stakers will continue receiving 90% of new issuance, while the protocol treasury receives 10%. SVRN chief executive Sal Ternullo submitted the proposal.
Lower Supply Growth Changes Staking Rewards
The NEAR Protocol proposal estimates that NEAR will issue 11.8 million fewer tokens over two years than under the existing ceiling. It projects 66.1 million fewer tokens over six years, representing 4.36% less supply than the baseline.
NEAR AI already uses staking rewards to pay for computing. In October, more than one million NEAR were staked for AI services.
At the final rate, the modeled daily issuance falls from about 89,517 to 57,291 tokens. Gross staking yields could decline from 5.27% to 3.37%, assuming the share of staked NEAR remains unchanged.
Validators Face Lower Reward Income
The proposal says 24 of 405 validator pools might struggle to cover running costs from staking rewards alone. These estimates use network data collected in September 2026.
Validators elsewhere face different concerns. In October, Ethereum developers patched software risks affecting validator rewards. The fixes addressed security problems, not token issuance.
NEAR Protocol previously lowered maximum issuance from 5% to 2.5% in October 2025. HSP-029 would continue that reduction without setting a fixed token supply.
Security Review and Upgrade Remain Pending
The House of Stake Security Council must review the approved vote. A roughly 90-day transition period after ratification will allow exchanges, wallets, custodians, and staking services to prepare.
Other blockchains have taken different approaches to supply. In October, BNB Chain completed another quarterly token burn, permanently removing tokens rather than reducing the rate of new issuance.
Validators must then adopt the protocol upgrade before the new schedule can begin. The proposal also calls for quarterly reports comparing actual issuance with the planned rate and monitoring validator participation.
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