BREAKING: NEAR stakers vote in one week on cutting issuance from 2.5% to 1.6%. The stated end goal in the same proposal is zero issuance and a fixed supply.
One parameter, phased in every epoch over 24 months. The 90/10 split between stakers and treasury stays as it is.
> 2.5% adds about 89,500 NEAR to supply every day
> 58.7% of NEAR is not staked, so those holders are diluted and get nothing back
> 6 years on the new schedule avoids about 66M NEAR, roughly $329M at today's price
> supply went from 1B at launch to over 1.3B in circulation
> staking yield goes from about 5.4% to about 3.5%
A House of Stake vote is not the end of it. Validators still have to adopt the change through the normal upgrade process, the same way the 2025 halving happened.
The usual objection is that small validators quit. NEAR already ran that test. When issuance was halved from 5% to 2.5% last October there were 342 validators. Dollar revenue per staked NEAR then fell about 75% as the price dropped, and the set grew to 382, peaked at 439 in April, and sits at 413 today.
The proposal comes from the CEO of SVRN, which holds 55M+ NEAR, most of it staked. It cuts their own staking revenue by roughly 970,000 NEAR a year, about $5M. He disclosed that himself.
Part two is not a proposal yet, it is a direction. Issuance should eventually END.
To be continued...$NEAR
One parameter, phased in every epoch over 24 months. The 90/10 split between stakers and treasury stays as it is.
> 2.5% adds about 89,500 NEAR to supply every day
> 58.7% of NEAR is not staked, so those holders are diluted and get nothing back
> 6 years on the new schedule avoids about 66M NEAR, roughly $329M at today's price
> supply went from 1B at launch to over 1.3B in circulation
> staking yield goes from about 5.4% to about 3.5%
A House of Stake vote is not the end of it. Validators still have to adopt the change through the normal upgrade process, the same way the 2025 halving happened.
The usual objection is that small validators quit. NEAR already ran that test. When issuance was halved from 5% to 2.5% last October there were 342 validators. Dollar revenue per staked NEAR then fell about 75% as the price dropped, and the set grew to 382, peaked at 439 in April, and sits at 413 today.
The proposal comes from the CEO of SVRN, which holds 55M+ NEAR, most of it staked. It cuts their own staking revenue by roughly 970,000 NEAR a year, about $5M. He disclosed that himself.
Part two is not a proposal yet, it is a direction. Issuance should eventually END.
To be continued...$NEAR
