【NEAR issuance cut by 36%: holders finally see a turning point】
$NEAR The community is getting serious: HSP-029 proposes lowering the annual issuance rate from 2.5% to 1.6% over 24 months, a 36% reduction. This cuts newly issued tokens, rather than directly burning existing supply. The proposal still needs to pass a governance vote, and validators will then need to adopt the protocol upgrade for it to take effect. Voting closes on November 2.
This is certainly good news for NEAR holders. According to the proposal’s estimates, annual new issuance will eventually fall significantly, easing long-term dilution pressure. But there’s a real trade-off: staking yields will also decline, with the proposal estimating that gross staking yields will drop from about 5.27% to 3.37%. Whether smaller validators can still cover their operating costs will also be put to the test.
NEAR is starting to take the issue of token supply seriously. However, reducing issuance doesn’t mean more buying, nor does it guarantee that the token price will rise.
There are two things to watch next: whether the proposal passes and whether validators support the upgrade. If ecosystem revenue and real demand still fail to keep pace after new supply declines, deflationary expectations alone won’t be enough to sustain a long-term rally.
$NEAR The community is getting serious: HSP-029 proposes lowering the annual issuance rate from 2.5% to 1.6% over 24 months, a 36% reduction. This cuts newly issued tokens, rather than directly burning existing supply. The proposal still needs to pass a governance vote, and validators will then need to adopt the protocol upgrade for it to take effect. Voting closes on November 2.
This is certainly good news for NEAR holders. According to the proposal’s estimates, annual new issuance will eventually fall significantly, easing long-term dilution pressure. But there’s a real trade-off: staking yields will also decline, with the proposal estimating that gross staking yields will drop from about 5.27% to 3.37%. Whether smaller validators can still cover their operating costs will also be put to the test.
NEAR is starting to take the issue of token supply seriously. However, reducing issuance doesn’t mean more buying, nor does it guarantee that the token price will rise.
There are two things to watch next: whether the proposal passes and whether validators support the upgrade. If ecosystem revenue and real demand still fail to keep pace after new supply declines, deflationary expectations alone won’t be enough to sustain a long-term rally.