NEAR HSP-029 proposes cutting annual issuance to 1.6%
NEAR governance proposal HSP-029 is now up for a vote. It would gradually lower NEAR’s maximum annual issuance rate from 2.5% to 1.6% over 24 months, reducing the rate by about 3.75 basis points per epoch. The proposal would retain the current 90/10 split between stakers and the treasury, with a 90-day grace period before the reduction begins if approved.
The estimates project about 11.8 million fewer NEAR issued over two years and 66.1 million fewer over six years. Staking yield is expected to decline from 5.268% to 3.372%. HSP-029 requires approval from the House of Stake and a separate adoption by validators through a standard protocol upgrade. NEAR has 406 active validators and a 42.71% staking rate.
Neutral
The proposal has mixed implications for NEAR trading, so its overall market impact is neutral while the vote and adoption process remain unresolved. A lower issuance rate could reduce future supply growth and strengthen the scarcity narrative, which may support NEAR over the longer term if demand remains steady. Similar token-supply reduction proposals can attract positive attention, but their market effect depends on whether investors believe the change will materially improve demand and token value.
In the short term, the proposal does not immediately change issuance: it must pass a House of Stake vote, then be adopted by validators through a protocol upgrade, followed by a 90-day grace period. That leaves room for uncertainty and limits the immediate impact on circulating supply. The expected fall in staking yield from 5.268% to 3.372% could also reduce the appeal of staking for some holders, potentially affecting participation and selling behavior. Traders may focus on vote results, validator support, NEAR’s price and trading volume, and broader crypto-market conditions. If adopted, the longer-term supply reduction may be supportive, but it is not by itself a guarantee of price appreciation.