NEAR Governance Opens Vote to Reduce Token Issuance
The proposal seeks to lower the maximum annual issuance of the NEAR token from 2.5% to 1.6%.
Updated on Oct. 21, 2026 in Investing
Live Poll
Do you support reducing token issuance rates even if it lowers your potential staking rewards?
The NEAR governance body has officially opened a vote on proposal HSP-029 to curb the maximum annual token issuance. This change aims to slow supply growth and limit dilution for those who do not hold their tokens in staking pools.
Why it matters
Reducing token issuance is intended to manage the long-term supply dynamics of the network. By slowing the creation of new tokens, the protocol seeks to provide greater stability for the asset.
The proposal would adjust the projected gross staking yield to 3.372% from the current rate of 5.268% measured on September 22, 2026. Staking participants would continue to receive 90% of newly issued tokens, with 10% allocated to the treasury.
The players
NEAR
NEAR is a decentralized layer-one blockchain platform designed to provide a secure and scalable environment for applications.
The details
If ratified, the proposal mandates a 90-day grace period followed by a 24-month phase-in period to reach the new issuance rate. Final implementation is contingent upon validators performing a separate network upgrade to enact the changes.
Timeline
September 22, 2026: Date of staking ratio used for yield modeling.
October 21, 2026: Date the governance vote opened.
Market Dynamics
This move follows a pattern established by major networks like the Ethereum 2.0 consensus mechanism transition in shifting toward more restrictive supply models. These adjustments reflect a broader industry trend of prioritizing long-term token holder value over rapid inflation.
Token holders who rely on staking yield should anticipate a decrease in annual returns, with projected gross yields falling to 3.372%. Investors should track the progress of the network upgrade, as changes to issuance will directly influence potential staking income.
The takeaway
Investors in decentralized protocols should closely monitor governance proposals that alter tokenomics, as these changes directly impact future yield projections. Understanding the long-term phase-in schedule is essential for accurately forecasting the performance of digital assets.
Further reading
For more context on blockchain asset strategies, visit the Investing section.
Live Poll
Do you support reducing token issuance rates even if it lowers your potential staking rewards?
