NEAR Governance Approves Major Supply Cut – But Token Slides 7%

NEAR Protocol’s House of Stake approved HSP-029, a measure to cut the network’s maximum annual token issuance from 2.5% to 1.6% over 24 months. The proposal keeps the existing distribution of new tokens, with 90% going to staking participants and 10% to the protocol treasury, while projecting the change would prevent about 11.8 million NEAR from entering circulation in the first two years. It estimates gross staking yield would fall from 5.268% to 3.372% at full implementation. The change still needs Security Council review, ratification and a 90-day waiting period before validators adopt it. NEAR fell 7% over 24 hours to about $3.84.