NEAR governance backs 1.6% issuance cap

NEAR’s House of Stake has approved HSP-029, a proposal to lower the network’s maximum annual issuance rate from 2.5% to 1.6% over 24 months. The vote passed on Nov. 2, according to The Block’s report on the vote.

The change would slow new token issuance, while reducing the rewards paid to stakers.

How will the issuance cap change?

The proposal sets a gradual, epoch-by-epoch ramp rather than an immediate cut. The cap would fall by about 3.75 basis points per month, reaching 1.6% in month 24.

According to the official HSP-029 proposal, the existing allocation stays in place: 90% of new tokens go to staking participants and 10% to the protocol treasury. The proposal changes the issuance cap alone; it does not change that split or the emissions mechanism.

What could the change mean for stakers?

The proposal projects gross staking yield declining from 5.268% to 3.372% by the end of the ramp, assuming staking participation stays at the level measured in September. That is a projected network-wide rate, not a guaranteed return for an individual staker.

At full implementation, daily issuance is projected to fall from about 89,500 NEAR to 57,300. The proposal estimates that roughly 11.8 million fewer NEAR would be issued over two years and 66.1 million fewer over six years than under the current 2.5% cap.

When would the lower cap take effect?

The vote does not activate the change by itself. The House of Stake Security Council must review the result, followed by a 90-day grace period; validators then need to adopt a protocol upgrade for the cap to become binding.

Until those steps are completed, the current protocol setting remains in place. If the upgrade goes ahead, the reduction would then unfold across epochs over two years, giving stakers and validators time to adjust as issuance and projected rewards decline.

Sources

• The Block’s report on the vote — theblock.co
• official HSP-029 proposal — gov.near.org