NEAR network moves to cut annual token issuance from 2.5% to 1.6%

NEAR governance approves slower token growth

NEAR Protocol's House of Stake has approved a proposal to lower the network's maximum annual token issuance rate from 2.5% to 1.6% over the next 24 months. The proposal passed with strong support.

Issuance is the rate at which a blockchain creates new tokens. For most chains, new supply rewards people who help secure the network through staking, and some also funds development. The change would make the yearly ceiling lower and apply the reduction gradually.

Key numbers behind the change

• Issuance ceiling would drop from 2.5% to 1.6% per year over 24 months.


• The ceiling would fall linearly by about 3.75 basis points each month.


• Projected savings of roughly 11.8 million NEAR over two years and 66.1 million NEAR over six years.


• Final supply would be about 4.36% smaller than under the 2.5% rule.


• Daily issuance would fall from around 89,500 NEAR to 57,300 NEAR once fully implemented.


• Gross staking yield is expected to drop from 5.268% to 3.372% if staking participation stays near September levels.


• The 90/10 split of new tokens between stakers and the treasury would stay the same.

Why the network is changing its supply schedule

NEAR says its early bootstrapping phase is largely over. The proposal argues that continued issuance at the old rate transfers value from the roughly 57% of the supply that is not staked toward those who do stake, while also adding sell pressure.

The proposal also noted that the active validator set is oversubscribed. A validator is a participant that helps run and secure the network.

NEAR said the change reflects its economics evolving through transparent, programmable governance: token holders put a core parameter to a public vote, and the new rate is rolled out on a published schedule.

What must happen before the rule applies

The change is not yet in force. The House of Stake Security Council must review the result before ratification. After that, there is a 90-day grace period, and validators must adopt a protocol upgrade for the new rate to become binding.

NEAR previously cut its maximum issuance from 5% to 2.5% in October 2025.

What is still being finalized

Some figures are projections based on the proposal's estimates. The 90/10 split and the emissions mechanism are described as unchanged. The projected staking yield assumes the September staking participation rate stays the same, which may not hold as market conditions shift.

Source

• The Block