NEAR Protocol Governance Body Approves Proposal to Cut Annual Token Issuance Cap by 36%

Odaily: The NEAR Protocol governance body House of Stake approved proposal HSP-029 on November 2 with approximately 99.96% support, with 3.29 million veNEAR in voting power. The proposal plans to gradually reduce the annual token issuance cap from 2.5% to 1.6% over 24 months, averaging a monthly reduction of 0.0375 percentage points.

The proposal was initiated by Sal Ternullo, CEO of Nasdaq-listed company SVRN, and adjusts only one protocol parameter while keeping existing allocation ratios unchanged: 90% of newly issued tokens are distributed to staking participants, and 10% go to the treasury. The proposal still requires approval from the House of Stake Security Committee and will be implemented after an approximately 90-day preparation period and validators completing the protocol upgrade.

Model estimates show that under the original issuance cap, approximately 11.8 million fewer NEAR would be issued in the first two years after implementation, and approximately 66.1 million fewer over six years. After full implementation, daily issuance is expected to drop from about 89,500 to 57,300; assuming similar staking participation rates, gross staking yield is expected to fall from 5.268% to 3.372%, and validator commission revenue is expected to decrease by 36%. (Bitcoin.com News)