NEAR Governance Approves Major Supply Cut – But Token Slides 7%

A proposal to gradually lower NEAR Protocol’s maximum annual token issuance from 2.5% to 1.6% over 24 months has secured approval from the network’s House of Stake governance body. The measure, outlined under HSP-029, aims to slow supply growth and limit long-term token dilution while preserving the existing reward structure. It retains the current allocation of newly issued tokens. 90% goes to staking participants, and the remaining 10% is directed to the protocol treasury. Rather than introducing a new emissions framework or changing validator reward distribution, the measure focuses on adjusting a single protocol parameter. HSP-029 The reduction will be introduced gradually across network epochs. The issuance ceiling will decline by approximately 3.75 basis points each month until it reaches the 1.6% target.