TheBlock
NEAR Protocol's House of Stake approved HSP-029, lowering the network's maximum annual token issuance from 2.5% to 1.6% over 24 months. The proposal passed with overwhelming support and keeps the existing 90/10 split of newly issued NEAR between stakers and the protocol treasury. It changes the issuance ceiling, not the emissions mechanism.
Why it matters
The rate will decline linearly each epoch, by roughly 3.75 basis points per month, until it reaches 1.6% at month 24. The proposal estimates the change will prevent about 11.8 million NEAR from being issued in the first two years and 66.1 million over six years, leaving supply about 4.36% smaller than under the current ceiling.
NEAR says its bootstrapping phase is largely over. The proposal also points to an oversubscribed active validator set and argues that continued issuance at the old rate adds sell pressure while shifting value from the roughly 57% of supply that is not staked to staking participants.
Market impact
At full implementation, estimated daily issuance falls from approximately 89,500 NEAR to 57,300 NEAR. Gross staking yield is projected to decline from 5.268% to 3.372%, assuming the staking participation rate measured in September remains unchanged. Lower issuance may ease dilution, but the yield reduction also changes the return for stakers.
The vote is not yet the final implementation step. The House of Stake Security Council must review the result before ratification; a 90-day grace period follows, then validators must adopt a protocol upgrade for the change to become binding. NEAR last cut its maximum issuance from 5% to 2.5% in October 2025.
Frequently asked questions
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How will NEAR's issuance ceiling change under HSP-029?
The maximum annual issuance rate will decline linearly from 2.5% to 1.6% over 24 months, by roughly 3.75 basis points per month.
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How much NEAR issuance does the proposal estimate it will prevent?
The proposal estimates about 11.8 million NEAR less issuance over the first two years and 66.1 million over six years.
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What happens to projected staking yield under the proposal?
Gross staking yield is projected to decline from 5.268% to 3.372% at full implementation, assuming the September staking participation rate remains unchanged.
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Does HSP-029 change how NEAR distributes newly issued tokens?
No. It retains the current 90/10 split between staking participants and the protocol treasury and changes the issuance ceiling, not the emissions mechanism.
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What steps remain before the new NEAR issuance ceiling takes effect?
The House of Stake Security Council must review the result before ratification. After a 90-day grace period, validators must adopt a protocol upgrade for the change to become binding.
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