NEAR got hit harder than the broader market today, trading at around 3.88, down about six percent over the past 24 hours, while Bitcoin barely moved over the same period.
The catalyst is that House of Stake passed HSP-029 on Monday, which would gradually lower the maximum annual issuance rate from 2.5% to 1.6% over two years.
But this hasn’t actually taken effect yet. It still needs to pass the Security Committee, go through a 90-day buffer period, and then wait for validators to upgrade.
Staking rewards will also be pushed down somewhat, and the market has already priced in the prospect of “thinner yields.”
Reduced issuance is a slow-moving factor; the sell-off looks more like expectations catching up with reality.
In the short term, watch whether today’s low of around 3.74 holds. A high-volume recovery to around 4.0 would offer some relief.
What are you watching next: when validators upgrade, or the 3.74 level?
$NEAR
#NEAR #issuancecut
The catalyst is that House of Stake passed HSP-029 on Monday, which would gradually lower the maximum annual issuance rate from 2.5% to 1.6% over two years.
But this hasn’t actually taken effect yet. It still needs to pass the Security Committee, go through a 90-day buffer period, and then wait for validators to upgrade.
Staking rewards will also be pushed down somewhat, and the market has already priced in the prospect of “thinner yields.”
Reduced issuance is a slow-moving factor; the sell-off looks more like expectations catching up with reality.
In the short term, watch whether today’s low of around 3.74 holds. A high-volume recovery to around 4.0 would offer some relief.
What are you watching next: when validators upgrade, or the 3.74 level?
$NEAR
#NEAR #issuancecut
