NEAR Falls 7% Despite Token Issuance Cut Approval

| bitcoinist.com
NEAR fell about 7% on November 3 to around $3.82, extending its weekly loss to roughly 13%, despite community approval of a token issuance cut. The price action suggests the NEAR tokenomics change has not yet eased near-term selling pressure or improved market sentiment. HSP-029 received about 99.9% of participating voting power, with approximately 3.28 million veNEAR voting in favor. It proposes gradually reducing NEAR’s maximum annual issuance rate from 2.5% to 1.6% over two years. The cut is projected to keep about 11.8 million NEAR out of circulation over two years and 66.1 million over six years, potentially reducing long-term dilution. However, gross staking yields are also expected to decline from about 5.2% to 3.3%, assuming other conditions remain unchanged. The NEAR issuance change is not yet in force. It must clear a 14-day Security Council veto window and subsequent ratification, followed by a 90-day grace period; validators must also adopt a protocol upgrade. For traders, reduced supply growth could support NEAR over the longer term, but lower staking rewards and persistent selling pressure may weigh on the token in the near term. The eventual price impact will depend on market conditions, demand and holder response.
Bearish
The immediate price signal is bearish: NEAR dropped about 7% on the day and roughly 13% over the week despite the proposal passing with overwhelming support. That suggests traders are prioritizing near-term selling pressure and market conditions over the prospective supply reduction. Lower projected staking yields, from about 5.2% to 3.3%, may also reduce the appeal of holding and staking NEAR for some investors. Over the longer term, a lower issuance rate could limit dilution and support the token if demand remains steady or grows. But the change is not yet active and must pass governance and implementation steps, so its supply effects are not immediate. As with similar tokenomics announcements, approval alone may not drive a sustained rally; traders are likely to watch price action, demand and staking participation as the proposal advances. Given the observed decline and the near-term reward trade-off, the expected price impact on NEAR is bearish, while the longer-term effect remains conditional.