Key Notes
- NEAR’s HSP-029 tokenholder vote passed with 99.96% of voting weight in favor.
- The plan lowers the maximum annual issuance ceiling from 2.5% to 1.6% over 24 months.
- Security Council review, a grace period and validator adoption remain before activation.
NEAR’s House of Stake voters have approved HSP-029, a plan to lower the network’s maximum annual token issuance from 2.5% to 1.6% through a gradual 24-month reduction. The vote advances the proposal, while activation still depends on governance review and a validator-adopted protocol upgrade.
The governance ballot closed on November 2 at 16:48 UTC with 99.96% of voting weight in favor. It recorded roughly 3.29 million veNEAR of support across a ballot with 36 voting accounts; veNEAR measures governance weight rather than a number of people.
The Issuance Ceiling Would Fall Gradually
The approved proposal text calls for reductions every epoch, equivalent to about 3.75 basis points per month. Over 24 months, the annual ceiling would fall by 0.9 percentage points, a 36% reduction relative to the existing maximum rate.
The allocation of new tokens would remain 90% for staking participants and 10% for the treasury. The proposal does not redirect those shares or establish a new spending program.
Its model estimates approximately 11.8 million fewer NEAR issued over two years compared with keeping the 2.5% ceiling. That represents avoided creation of new tokens, rather than a burn of existing balances or a guarantee that total supply will decline.
CoinScreamer’s earlier proposal coverage examined the schedule while voting was open. The new development is the completed tokenholder vote.
Lower Dilution Comes With Lower Staking Rewards
The detailed model projects gross annual staking yield falling from 5.268% to 3.372% at the target issuance rate. It holds staking participation at 42.71% of supply, using the proposal’s September 22 network snapshot. Actual rewards would depend on future participation, with validator commissions affecting delegators’ net returns.
Author Sal Ternullo of SVRN argues that the validator set is oversubscribed and that the existing rate imposes unnecessary dilution on holders outside staking. About 57.3% of supply was unstaked in the snapshot used for that argument.
The proposal also acknowledges pressure on validator economics. A smaller reward budget could affect operator viability and staking participation, so the plan calls for quarterly reporting on issuance and validator-set health.
A Security Council Review Comes Before Ratification
The ballot is now in a 14-day veto window ending November 16 at 16:48 UTC. House of Stake’s timeline says the Security Council may veto on legal or technical grounds; without a veto, the proposal is automatically ratified.
The specification provides for a full-quarter grace period after ratification before the reduction begins. Validators must separately adopt the required protocol upgrade, and the 24-month ramp is measured from activation.
There is no confirmed network activation date in the governance record reviewed. The vote therefore approves a path toward a lower ceiling; it does not mean NEAR is already issuing tokens at 1.6% annually.
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