Mars

would

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NEAR's (<a href="https://x.com/NEARProtocol" rel="noopener noreferrer nofollow">@NEARProtocol</a>) House of Stake is voting on a proposal to reduce annual token issuance from 2.5% to 1.6%. The measure, known as HSP-029, would lower the rate of new NEAR tokens entering circulation and cut projected rewards for stakers.
<h2 id="what-hsp-029-would-change">What HSP-029 would change</h2>
The proposal would phase in the reduction over 24 months, following a 90-day grace period. The Defiant reported that validators must separately adopt a network upgrade for the change to take effect.
Under the proposal's assumptions, projected staking yield would fall from 5.268% to 3.372%. The existing 90/10 split between stakers and the treasury would remain unchanged.
HSP-029 estimates that 66.1 million fewer NEAR tokens would be issued over six years. According to PANews, the plan would also avoid about 11.8 million NEAR of issuance over the first two years, reducing supply by about 4.36% compared with current policy.
The proposal was put forward by Sal Ternullo, CEO of SVRN, according to the NEAR governance forum. The forum post lists it as a super majority decision under the economic governance category. The figures are the author's modelling estimates, not outcomes of a change already made to the network.
<h2 id="rationale-and-what-happens-next">Rationale and what happens next</h2>
Ternullo's argument is that NEAR no longer needs high issuance to bootstrap the network. Yahoo Finance reported that he points to an oversubscribed validator set and revenue generated by NEAR Intents. Another report said the proposal aims to reduce dilution risk for holders who do not stake.
The trade-off is lower returns for stakers and validators. Lower issuance reduces dilution but also trims the rewards that help secure the network, so the vote effectively weighs scarcity against staking income.
The vote is not a move to a fixed supply. Altcoin Buzz noted that any future shift toward zero issuance would need further research and a separate governance process. Voting is scheduled to close on November 2, 2026, according to a KuCoin News summary of a Mars Finance report.
If the House of Stake approves HSP-029, the 90-day grace period would give wallets, exchanges and staking providers time to update their systems before the first reduction. Validators would then still need to adopt the upgrade through the standard process.
Sources
<ul>
 <li>The Defiant: NEAR Opens Vote to Cut Token Issuance to 1.6%</li>
 <li>NEAR Forum: HSP-029 proposal text</li>
 <li>Yahoo Finance: NEAR ETF Draws $35.5M as Proposal Targets Lower Inflation</li>
</ul>

NEAR Proposal Targets a Sharp Cut in Token Issuance

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