NEAR governance approved proposal HSP-029, which will gradually reduce the protocol’s maximum annual token issuance from 2.5% to 1.6% over 24 months. The measure is designed to slow supply growth and limit long-term token dilution while retaining the current allocation of 90% of newly issued tokens to staking participants and 10% to the protocol treasury. Estimates indicate that around 11.8 million NEAR would be kept out of circulation during the first two years, with the cumulative reduction reaching 66.1 million over six years. Gross staking yield is projected to fall from 5.268% to 3.372% once the new issuance rate is fully implemented. The change still requires Security Council review and ratification, followed by a 90-day waiting period before validators adopt the upgrade, while the NEAR token fell 7% to trade around $3.84.
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