NEAR governance proposes 36% reduction in token issuance, dividing validators
Proposal to cut issuance by 36%
On Oct. 7, NEAR’s House of Stake governance system submitted proposal HSP‑029. The proposal would lower the maximum annual token issuance from the current 2.5% to 1.6%, a 36% reduction. The change would take effect after a 90‑day grace period and then be phased in over a 24‑month ramp. It still allocates 90% of newly issued tokens to staking participants and 10% to the treasury. The proposal must be ratified by the community and adopted by validators through a protocol upgrade.
Key numbers
- NEAR total supply grew by ~2.69 million tokens (0.21%) between Sep. 22 and Oct. 22, 2026.
- Current issuance cap: 2.5% per year.
- Proposed issuance cap: 1.6% per year (36% lower).
- 90% of new issuance goes to stakers, 10% to the treasury.
- Implementation includes a 90‑day grace period followed by a 24‑month linear ramp.
- Target cap would be reached roughly 27 months after ratification.
Recent supply growth
The blockchain’s total supply rose from 1,306,946,399.1749655 NEAR at block 216701043 on Sep. 22 to 1,309,640,572.7751897 NEAR at block 221111299 on Oct. 22. This increase of 2,694,173.6002242 NEAR shows the network remains inflationary over the measured period.
How the cut changes rewards
Staking – locking tokens to help secure the network and earn rewards – currently receives about 45.27% of all NEAR tokens (≈592.87 million of 1.31 billion). Using the proposal’s 90% allocation and keeping participation constant, a simple annual reward rate would drop from roughly 4.97% under the 2.5% cap to about 3.18% under the eventual 1.6% cap. After a typical 5% validator commission, delegator rates would fall from about 4.72% to 3.02%.
Implementation timeline
If the community ratifies HSP‑029, a 90‑day grace period would start. After that, the issuance cap would be reduced gradually over the next 24 months, with adjustments each epoch. Validators would need to upgrade their software to activate the new parameters. The full target cap would be in place roughly 27 months after ratification.
Why it matters for validators
Lower issuance means fewer newly minted tokens are available as staking rewards. Validators who rely on reward income may see their earnings decline, leading to differing views among the validator community. The gradual ramp spreads the impact over two years, but the proposal still creates a split in opinion on the network’s future token economics.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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