NEAR Protocol Considers Reducing Token Issuance to 1.6%
NEAR Protocol is evaluating a governance proposal to lower its maximum annual token issuance from 2.5% to 1.6% over a two-year period, a move that would impact staking yields and circulating supply.
NEAR Protocol is currently reviewing a governance proposal that would reduce its maximum annual token issuance rate from 2.5% to 1.6%. The plan, introduced by SVRN CEO Sal Ternullo, aims to phase in this reduction over 24 months through incremental changes at every epoch.
If the proposal is adopted, it is estimated that approximately 66 million NEAR tokens would be kept out of circulation. At current prices, this represents roughly $329 million in value that would not enter the market supply.
The existing distribution structure would remain unchanged under the proposal, with 90% of new issuance allocated to stakers and 10% directed to the treasury. However, the reduction in total issuance would impact staking rewards, with projected yields expected to drop from approximately 5.4% to 3.5% once the new rate is fully implemented.
The proposal includes a 90-day grace period to allow ecosystem participants, including staking providers and wallets, to adjust to the changes. Additionally, the plan features a governance mechanism that allows for the reduction to be paused, though it prohibits reversing the process to increase issuance.
This initiative follows a previous reduction in the network's issuance rate from 5% to 2.5%, which was implemented in late 2025 as part of the nearcore v2.9.0 upgrade and received approximately 80% support from validators.
The proposal is currently under discussion on the NEAR Governance Forum, with community feedback being collected. A final vote by the House of Stake is tentatively expected by October 11, 2026.
