House of Stake passed proposal HSP-029, phasing in a 36% lower issuance cap over 24 months after a 90-day grace period
NEAR Protocol is turning down the token printer again. Its governance body, the House of Stake, voted on November 2, 2026 to approve proposal HSP-029, which lowers the network’s maximum annual issuance from 2.5% to 1.6%.
The change will not land overnight. It phases in over 24 months, which is a long runway for a cut that amounts to a 36% decrease in the issuance ceiling.
This is the second time NEAR has trimmed its issuance cap. The first cut, from 5% to 2.5%, took effect in late October 2025. For a network that once allowed 5% annual inflation, the new 1.6% ceiling marks a very different monetary posture.
What HSP-029 actually changes
The proposal keeps the existing 90/10 split in place. Stakers continue to receive 90% of newly issued tokens, while the protocol treasury gets the remaining 10%.
The proposal also introduces no new spending and no validator subsidies. It is a straight reduction in how many tokens get minted, with no side deals bolted on.
The timeline has two stages. First comes a grace period of roughly 90 days, which begins after the Security Council ratifies the proposal and validators adopt the required protocol upgrade.
After that, a 24-month ramp gradually steps issuance down until it reaches the 1.6% cap.
The proposal was authored by Sal Ternullo, CEO of SVRN. It passed with overwhelming support, with approximately 3.29 million veNEAR cast in favor. veNEAR serves as the voting weight inside House of Stake governance.
The numbers behind the cut
Under the current cap, the network mints approximately 89,500 NEAR per day. At full implementation, that figure is projected to fall to around 57,300 NEAR.
Over the first two years, modeling indicates about 11.8 million fewer NEAR tokens will be issued. Stretch the window to six years, and the total reduction compared to the prior cap could reach approximately 66 million NEAR.
Staking yields are expected to drop from about 5.27% gross to 3.37%. Because 90% of new tokens flow to stakers, a smaller issuance pie means a smaller slice for anyone earning staking rewards.
Why NEAR keeps tightening the tap
When a network mints new tokens, holders who stake receive those rewards and roughly keep pace. Holders who do not stake see their share of the total supply shrink each year.
A lower issuance cap softens that effect. The revised rate is anticipated to lessen dilution for non-stakers, meaning passive holders lose less ground over time.
The 2025 cut from 5% to 2.5% set the direction. HSP-029 continues it, moving NEAR further down the same path in a phased, predictable way rather than through an abrupt shock.
What this means for stakers, holders and the network
For stakers, gross yields are expected to move from about 5.27% to 3.37%.
The treasury keeps its 10% share, but 10% of a smaller number is still a smaller number. With no new spending or validator subsidies included in HSP-029, the treasury will be working with a reduced inflow over time.
The next practical steps are Security Council ratification and validator adoption of the upgrade, which together start the clock on the 90-day grace period. Until those happen, the current 2.5% cap remains the rule.
