NEAR Vote Backs Cutting Annual Issuance Cap to 1.6% Over 24 Months
Key Facts
NEAR governance closed its vote on proposal HSP-029 with approval, backed by 99.97% of participating veNEAR votes, according to coverage published on November 2, 2026. The proposal cuts the maximum annual issuance cap from 2.5% to 1.6% through a gradual process spanning 24 months. Voting closed at 16:48 UTC on Monday, according to the coverage. But the vote result does not mean the issuance cut starts immediately; the current cap remains in place until validator operators adopt a network upgrade that includes the new schedule. The approval is therefore an initial governance step, while implementation remains subject to a separate technical decision.
The proposal calls for a linear reduction in the cap from 2.5% to 1.6% over 24 months, at a rate of about 3.75 basis points per month. The change will be applied gradually with each epoch, rather than through a one-time rate cut. After ratification, the first step will be preceded by a 90-day grace period, followed by the gradual reduction. The proposal says the grace period is intended to give wallets, trading platforms, custodians and staking providers time to update disclosures related to issuance. The schedule therefore does not begin as soon as voting closes, and its start date depends on a network upgrade and validators adopting it.
The proposal frames the issuance cut as a way to reduce dilution for NEAR holders who do not participate in staking. Its simulation estimates that the schedule would avoid issuing 11.8 million NEAR over two years compared with maintaining the status quo, with the difference reaching 66.1 million over six years. Under the model, that would mean a 4.36% smaller supply after six years than in a scenario where the current system remains in place. These are estimates based on a comparison between two paths, not issuance already avoided. The calculations provide a measure of the expected change in supply if the schedule is implemented as proposed.
The proposed schedule would affect more than supply: the model forecasts a decline in gross staking yield from 5.268% to 3.372% when the target issuance cap is reached. The estimate is based on the staking ratio measured on September 22, 2026, and therefore reflects a calculation conditional on the model's inputs, not an outcome already realized. Lower issuance means the portion of yield tied to it declines, according to the proposal's estimates, while dilution for holders who do not stake is reduced. The proposal does not guarantee in these estimates that the lower yield will be offset by another source. Reaching the target rate remains tied to completing the process over 24 months after it begins.
The proposal marks a further cut following an earlier change in issuance policy: the network lowered its cap from 5% to 2.5% in 2025, according to the voting coverage. HSP-029 aims to move the cap to 1.6%, while retaining the existing distribution of issuance, according to the official proposal. The forum lists the proposal's status as “passed” and also confirms the move from 2.5% to the target rate. That status, however, refers to the governance outcome and does not remove the requirement for validators to adopt a network upgrade. The next implementation step is therefore to include the new issuance schedule in an upgrade adopted by validator operators.
In trading, NEAR closed at $4.289 on November 1 and then at $3.86 on November 2, according to EL7 data. The two closes came around the timing of the governance vote, but they do not establish that the price move resulted from the vote outcome. The issuance cap also did not change when voting closed, as activating the cut requires a network upgrade and validators to adopt it. After the 90-day grace period, a gradual reduction lasting 24 months will begin if implementation proceeds as proposed. Under the announced terms, the next step is for validators to adopt the upgrade carrying the issuance schedule.