NEAR governance approves issuance ceiling cut for token supply

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NEAR issuance ceiling reduced

Highlights

NEAR Protocol governance approved proposal HSP-029 to cut the token's maximum annual issuance ceiling from 2.5% to 1.6% over 24 months.
The phased reduction will avoid approximately 11.8 million NEAR in issuance over two years and 66.1 million NEAR over six years, shrinking supply by 4.36%.
Daily issuance will drop from 89,500 NEAR to 57,300 NEAR and gross staking yield will fall from 5.268% to 3.372%, pending Security Council ratification and protocol upgrade.

Implementation path and tokenomics changes

As reported by The Block, proposal HSP-029 passes NEAR Protocol's House of Stake on Monday with overwhelming support and changes only one protocol parameter, the network's maximum annual issuance rate. The existing 90/10 split of newly issued tokens between staking participants and the protocol treasury remains in place, and the emissions mechanism itself does not change.

Under the plan, the issuance ceiling declines linearly each epoch at roughly 3.75 basis points per month until it reaches 1.6% in the 24th month. NEAR says the adjustment is meant to slow dilution and reduce long-term sell pressure as the network's bootstrapping phase is largely over.

The proposal says the validator set is oversubscribed and that keeping the prior issuance rate transfers value from the roughly 57% of supply that is not staked to those who do stake, while also adding sell pressure. In an X post, NEAR says the change shows how the network's economics evolve transparently through public voting and a published rollout schedule.

Market impact and approval timeline

The proposal estimates the phased reduction would avoid roughly 11.8 million NEAR in issuance over the first two years and 66.1 million over six years. That would leave token supply about 4.36% smaller than under the existing 2.5% ceiling.

At full implementation, daily issuance is projected to fall from about 89,500 NEAR to 57,300 NEAR. Gross staking yield is also projected to decline from 5.268% to 3.372% over the same period, assuming the staking participation rate measured in September remains unchanged.

Before the change takes full effect, the House of Stake Security Council needs to review the vote result before ratification. After that, a 90-day grace period follows, and validators then need to adopt a protocol upgrade for the lower issuance ceiling to become binding. NEAR previously reduced its maximum issuance rate from 5% to 2.5% in October 2025.

Our earlier article on the IMF’s updated outlook for sub-Saharan Africa noted that while 2026 growth expectations improved, the inflation path has worsened, raising the risk of tighter monetary policy and higher borrowing costs. We also highlighted how rising U.S. Treasury yields and climate-related shocks such as El Niño can quickly reprice financing conditions and strain fiscal buffers—dynamics that often feed through to market yields and investor demand.

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