NEAR Opens Vote to Reduce Token Issuance to 1.6%

NEAR community votes on lower token issuance

The NEAR blockchain has opened a governance vote on proposal HSP-029, which would cut the annual token issuance rate to 1.6%. Currently, new tokens are created each year at a higher rate to reward validators and fund ecosystem development.

If passed, the change would not happen all at once. Instead, issuance would be reduced gradually over a 24-month period, with a 90-day grace period before the cuts begin.

What the proposal requires

The governance vote is only one step. Even if NEAR token holders approve HSP-029, validators must separately adopt a network upgrade for the lower issuance rate to actually go into effect on the blockchain.

Key points

• HSP-029 proposes cutting NEAR token issuance to 1.6% annually


• The reduction would happen gradually over 24 months


• A 90-day grace period precedes the implementation


• Validators must independently approve a network upgrade for the change to activate

Why this matters

Token issuance determines how many new NEAR tokens enter circulation each year. Lower issuance can reduce selling pressure from newly created tokens, which some investors see as a positive signal for the token's scarcity over time.

What is still unclear

The source does not specify the current issuance rate, how many votes are needed for the proposal to pass, or whether validators have already signaled support for a network upgrade.

Sources

• The Defiant

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