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NEAR Governance Approves Major Supply Cut – But Token Slides 7%
A major change in NEAR tokenomics could shrink projected supply by 4.36% over six years, while reducing staking returns.
Dextape brief
Members of NEAR Protocol's House of Stake governance body have approved HSP-029, which would lower the network's yearly issuance ceiling from 2.5% to 1.6% over two years. Newly minted tokens would still split nine-tenths to stakers and one-tenth to the treasury, and the existing distribution stays unchanged. The proposal projects about 11.8 million NEAR kept out of circulation over two years and 66.1 million over six, leaving supply roughly 4.36% smaller. Gross staking yield would fall from 5.268% to 3.372% once fully applied. Ratification and a Security Council review must still happen, followed by a 90-day wait before validators upgrade. Meanwhile, NEAR fell 7% in 24 hours to about $3.84.
Why it matters: It shows the network choosing a predictable, rule-based supply change over discretionary funding, with direct effects on token supply and staking returns.
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Dextape context
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Terms in this story
- Governance
- The process for deciding changes to a protocol and its settings, whether through token-holder votes, a foundation or core developers.
- Tokenomics
- How a token's supply works: how many exist, who holds them, how new ones are issued or burned, and when locked tokens unlock.
- Staking
- Locking a proof-of-stake network’s native asset to help secure it in return for rewards, directly or through a service.
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