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NEAR House of Stake backs 1.6% issuance cap

NEAR’s House of Stake approved a 24-month cut in the annual issuance ceiling from 2.5% to 1.6%, subject to review and validator adoption on the network.

Uruguay Can Editorial

NEAR House of Stake backs 1.6% issuance cap

NEAR’s maximum annual issuance ceiling stood at 2.5%.

On Monday, November 2, NEAR’s House of Stake approved HSP-029, a proposal to lower that ceiling to 1.6% over 24 months. The report by The Block says the change would slow the rate at which new NEAR enters circulation. The proposal’s official governance record lists it as succeeded and says the existing 90/10 split between stakers and the protocol treasury would remain.

How would the 1.6% ceiling take effect?

The ceiling would fall gradually, by about 3.75 basis points per month, rather than changing all at once. The Block reports that the schedule would run across 24 months and estimates it would avoid about 11.8 million NEAR in issuance during the first two years. That is a projected reduction in new supply, not a removal of tokens already in circulation.

The vote does not make the new rate binding immediately. According to The Block, the next steps are:

  1. The House of Stake Security Council reviews the result before ratification.
  2. A 90-day grace period follows ratification.
  3. Validators adopt a protocol upgrade for the change to take effect.

What still needs to happen before the cap changes?

Validator adoption remains necessary because the issuance ceiling is a protocol parameter. Until validators implement the upgrade, the existing 2.5% ceiling remains in place. If the steps are completed, the cap will decline epoch by epoch toward 1.6% at the end of the two-year ramp, while the existing 90/10 allocation remains unchanged.

Sources