NEAR token issuance could be reduced under a proposal approved by the network’s House of Stake. HSP-029 would lower the maximum annual rate from 2.5% to 1.6% over 24 months. The vote passed on November 2, but it does not immediately change protocol rules. Cointelegraph reported that NEAR fell 7% on November 3; the report does not establish that the vote caused the decline.
Why it matters
The proposal would reduce new token emissions, which its authors say could limit dilution for holders who do not stake. Its model also estimates lower gross staking yield at the target rate, and identifies a potential economic impact for some validator pools. The vote is one step in a process, not a live change to the network.
What we know about NEAR token issuance
NEAR’s House of Stake passed HSP-029 on November 2, according to The Block. The House of Stake proposal listing records 99.96% support, less than 0.01% against and 0.03% abstaining. The proposal targets a reduction in the maximum annual issuance ceiling from 2.5% to 1.6% over two years.
The change would apply gradually rather than all at once. The official HSP-029 proposal describes a linear decrease of about 3.75 basis points per month. It also retains the measured allocation split, with 90% going to staking participants and 10% to the treasury.
The proposal estimates about 11.8 million fewer NEAR issued over two years and 66.1 million fewer over six years. Cointelegraph valued the two-year reduction at about $45 million at the price cited in its November 3 report. That dollar estimate depends on NEAR’s market price and is not a fixed saving.
HSP-029 cites a September 22, 2026 measurement showing 42.71% of NEAR supply staked and 57.3% unstaked. Its authors argue that lower issuance would reduce dilution for non-stakers. They also model gross staking yield declining from 5.268% to 3.372% at the target rate, assuming the measured staking ratio remains unchanged. These are proposal estimates based on that assumption, not fixed staking rates.
The vote follows an earlier change. The Block reported that NEAR reduced its maximum issuance rate from 5% to 2.5% in October 2025. HSP-029 proposes a further reduction to the ceiling.
What is still unclear
HSP-029’s passage does not make the new ceiling binding. The Block reported that the plan still requires Security Council review and ratification, followed by a 90-day grace period and validator adoption through a protocol upgrade. Approval alone does not put the change into effect.
The proposal’s listing records a successful governance vote, while the remaining steps concern review and implementation. The supplied reporting does not give dates for those steps. Readers following NEAR token issuance should distinguish support for the proposal from a change to network emissions.
There is also a trade-off for network operators. The proposal’s model estimates that 24 of 405 validator pools would lose economic self-sufficiency at the 1.6% target under the spot conditions it measured. This is a model estimate, not a count of validators expected to leave.
Market context
Cointelegraph reported that NEAR fell 7% on November 3 as the issuance-cut proposal passed. The supplied market data does not include a NEAR price or a timestamped trading range, so the report’s percentage decline is the available measure. It does not show that the governance vote alone caused the move.
The Crypto Fear & Greed Index was 26, classified as Fear, on November 3. This provides broader market context, not a NEAR-specific signal. The proposal’s estimated reduction in supply growth may matter to holders concerned about dilution. Its lower modeled yield and the potential effect on some validator pools are also relevant considerations; the evidence does not establish how the market will weigh them.
NEAR token issuance and the validator trade-off
A forum commenter who identified as a NEAR holder, validator operator and governance delegate supported the reduction, while noting that lower rewards could lead some existing stakers or validators to leave. The commenter described those effects as uncertain. This is one participant’s view in the proposal discussion, not a forecast from the network or a market consensus.
What it means for investors
For holders, HSP-029 concerns the pace of new token issuance. Its authors argue that reducing issuance could lower dilution for non-stakers. That rationale does not establish how the proposal would affect NEAR’s market price.
For stakers, the proposal’s yield figures are modeled gross rates based on an assumed staking ratio. They are not a promise of the rate an individual participant will receive. For validators, the proposal identifies a possible economic impact: under its measured spot conditions, 24 of 405 pools would lose economic self-sufficiency at the target rate.
The proposal is not yet binding. Security Council review and ratification, a 90-day grace period, and validator adoption through a protocol upgrade remain required, according to The Block’s report.
Bottom line
NEAR’s House of Stake approved a plan to reduce the maximum annual issuance rate to 1.6% over 24 months. The proposal models fewer new tokens alongside lower gross staking yield, but the change remains conditional on further review and validator adoption. The next step is whether the required review and protocol upgrade move forward.
Sources
- HSP-029: Establish a 24-Month Issuance Ramp to a 1.6% Target Rate Of NEAR Token Emissions (gov.near.org)
- NEAR token sinks 7% as proposal to cut annual token issuance passes (Cointelegraph)
- NEAR governance approves proposal to cut token issuance ceiling to 1.6% (The Block)
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrencies are highly volatile; always do your own research before investing.
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