NEAR Protocol approves reduction of maximum annual token issuance from 2.5% to 1.6%

NEAR Protocol's House of Stake voted on November 2, 2026 to approve proposal HSP-029, cutting the network's maximum annual token issuance ceiling from 2.5% to 1.6%. Authored by SVRN CEO Sal Ternullo, the plan reduces daily minting from roughly 89,500 to 57,300 NEAR, projecting 11.8 million fewer tokens over two years. The move lowers gross staking yields from 5.27% to 3.37% to mitigate dilution for passive token holders. Full implementation requires Security Council ratification and a validator upgrade.

Governance vote details

• ▪The approval of proposal HSP-029 marks the second time NEAR Protocol has lowered its token issuance ceiling, following an initial reduction from 5% to 2.5% in late October 2025
• ▪Proposal HSP-029 was authored by SVRN CEO Sal Ternullo and passed with approximately 3.29 million veNEAR voting weight cast in favor
• ▪NEAR Protocol's House of Stake voted to approve proposal HSP-029, lowering the network's maximum annual token issuance from 2.5% to 1.6%

Implementation timeline and grace period

• ▪The implementation of NEAR Protocol's lower issuance cap begins with a roughly 90-day grace period following ratification by NEAR Protocol's Security Council and validator protocol upgrade adoption
• ▪NEAR Protocol's existing 2.5% annual issuance cap remains active until NEAR Protocol's Security Council ratifies proposal HSP-029 and network validators adopt the required upgrade
• ▪Following the 90-day grace period under proposal HSP-029, NEAR Protocol will gradually step down token issuance over a 24-month transition period until reaching the final 1.6% maximum cap

Projected emission and yield reductions

• ▪Under proposal HSP-029, daily token issuance on NEAR Protocol is projected to decrease from approximately 89,500 NEAR per day to around 57,300 NEAR at full implementation
• ▪Modeling indicates NEAR Protocol will issue about 11.8 million fewer NEAR tokens over two years and 66 million fewer over six years under the 1.6% cap set by proposal HSP-029
• ▪SVRN CEO Sal Ternullo said NEAR Protocol staking yields are expected to fall from approximately 5.27% gross to 3.37% as new token emissions decrease

Economic rationale and reward split

• ▪Proposal HSP-029 maintains NEAR Protocol's split of newly issued tokens, directing 90% to stakers and 10% to the protocol treasury, with no added spending or validator subsidies
• ▪Proposal HSP-029 aims to continue NEAR Protocol's monetary policy shift in a phased manner rather than through an abrupt economic shock to stakers and non-stakers
• ▪Lowering NEAR Protocol's issuance ceiling is designed to reduce token dilution for passive holders who do not earn staking rewards