NEAR Protocol Token Annual Issuance Cap Reduced by 36%

The governance body of NEAR Protocol, House of Stake, passed proposal HSP-029 on November 2 with approximately 99.96% support, representing 3.29 million veNEAR votes. The proposal reduces the annual token issuance cap from 2.5% to 1.6%, with a gradual adjustment over 24 months, averaging a decrease of 0.0375 percentage points per month. Initiated by SVRN CEO Sal Ternullo, the proposal only adjusts one protocol parameter, while the existing allocation ratio remains unchanged: 90% of newly issued tokens will be allocated to staking participants, and 10% will go to the treasury. The proposal requires approval from the House of Stake Security Committee and will be implemented after an approximately 90-day preparation period and the completion of protocol upgrades by validators. Model estimates suggest that after implementation, around 11.8 million NEAR could be issued less in the first two years, and approximately 66.1 million less over six years. After full implementation, the daily issuance is expected to decrease from about 89,500 tokens to 57,300 tokens; under the assumption of similar staking participation rates, the gross staking yield is projected to drop from 5.268% to 3.372%, and validator commission income is expected to decrease by 36%.

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