NEAR Protocol's onchain governance body, the House of Stake, has voted to lower the network's yearly issuance ceiling from 2.5% to 1.6%, phasing the reduction in over 24 months, NEAR announced on X on Nov. 2.
The vote does not change issuance on its own. Several steps remain, per NEAR. The House of Stake's Security Council has to look over the result before ratification. A roughly 90-day grace period follows, and the change becomes binding only once validators adopt it through a protocol upgrade. The proposal , HSP-029, says it "cannot take effect on a House of Stake vote alone." NEAR's post did not include a vote count, and the copy of the proposal page reviewed by Unchained listed no tally.
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How the New Schedule Works
HSP-029 was written by Sal Ternullo, CEO of Nasdaq-listed SVRN. Once active, the cap would drop by roughly 3.75 basis points a month, recalculated every epoch instead of in fixed steps, until it hits 1.6% at month 24. New tokens would still go 90% to stakers and 10% to the NEAR treasury.
Ternullo's own modeling projects 11.8 millionfewer NEAR issued over two years and 66.1 millionfewer over six, a supply 4.36% below the current path. At today's staking participation, it puts gross staking yield at about 3.37% at the target rate, down from roughly 5.27%. The proposal also estimates that 24 validator pools would stop covering their own costs at the new rate and the token price it measured in September.
Using the total supply the proposal measured on Sept. 22, the 2.5% cap works out to about 89,500 new NEAR a day and the 1.6% target to about 57,300, or roughly 32,200 fewer new NEAR a dayonce the ramp is complete, by Unchained's calculation.
Disclosures and Background
The proposal discloses that SVRN holds about 55 million NEAR, more than 90% of it staked, accounting for over 8% of all staked NEAR, and that SVRN intended to vote in favor. Ternullo wrote that the cut also lowers the yield on SVRN's own stake.
NEAR halved its issuance to 2.5% in 2025 through the same validator upgrade path, according to the proposal. Ternullo presented HSP-029 as one of the alternatives raised after NEAR co-founder Illia Polosukhinwithdrew a Sovereign Fund proposal in August, citing what Polosukhin called "risks the protocol should not internalize."
NEAR said quarterly reports will compare realized issuance with the published schedule once the ramp is live.
Related Listen: Is Ethereum's Issuance Proposal Already 'Dead in the Water'?
