NEAR Proposes Cutting Annual Token Issuance to 1.6%
HSP-029 would lower the network's maximum yearly issuance from 2.5% over 24 months, pending validator adoption.
Updated on Nov. 2, 2026 in Investing
A proposal filed on October 7, 2026 would reduce the NEAR network's maximum annual token issuance from 2.5% to 1.6% over 24 months. Validators must independently adopt the protocol upgrade before the change becomes binding.
Why it matters
The change would slow new token supply while keeping the existing 90% staker and 10% treasury allocation intact. Staking returns would fall as a result, which could affect how sustainable smaller validator operations are.
The proposal's model projects 66.1 million fewer NEAR issued over six years, a 4.36% smaller supply after that period, based on a September 22, 2026 mainnet snapshot at block 216,701,043. The model does not address how validator adoption will proceed.
The players
Sal Ternullo
Author of HSP-029, who presented the proposal as a response to the withdrawn Sovereign Fund proposal.
Illia Polosukhin
Co-founder of NEAR Protocol whose feedback, along with that of validators and holders, persuaded the author to drop discretionary allocation from the proposal.
The details
HSP-029 changes the maximum annual issuance rate as its only protocol parameter, with a gradual per-epoch decline of roughly 3.75 basis points per month after a 90-day grace period following ratification. The proposal creates no fund, administrator, oracle or discretionary spending program, and it leaves protocol revenue, including intent fee-switch buybacks, untouched.
Timeline
September 22, 2026: NEAR mainnet snapshot used for the calculations.
October 7, 2026: HSP-029 proposed.
Ratification is followed by a 90-day grace period before the decline begins.
Market Dynamics
HSP-029 follows the withdrawn Sovereign Fund proposal by keeping the issuance cut while dropping its discretionary fund structure. Solana's SGP-0002, ratified on August 28, 2026 with 67.001% of stake, offers a comparable recent example of a network-level protocol change.
Holders of NEAR and stakers who delegate to validators would see lower gross staking yields if the change is adopted. Those with smaller positions should weigh how declining per-token rewards compare with their expected portfolio returns.
The takeaway
Token issuance policy directly affects staking income, so check how any protocol change alters yields before adjusting a position. Changes depend on validator adoption, which can take time to materialize.
Further reading
Explore more on Investing to see how token supply changes affect long-term holder returns.
