A proposed NEAR token issuance reduction would lower the annual cap to 1.6%

A NEAR token issuance reduction proposed on October 7, 2026, would lower the network’s maximum annual issuance from 2.5% to 1.6% over 24 months. HSP-029 pairs slower dilution for holders with lower staking rewards: its modeling projects 66.1 million fewer NEAR issued over six years, while gross staking yield falls from 5.268% to 3.372% at the measured participation rate. Key takeaways HSP-029 preserves the 90% staker and 10% treasury allocation. The model projects a 4.36% smaller supply after six years. Validator adoption is required beyond House of Stake ratification. The viability analysis projects 24 of 405 pools losing economic self-sufficiency. How the proposed NEAR token issuance reduction works HSP-029 changes one protocol parameter: the maximum annual issuance rate.

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