NEAR Protocol Considers Further Token Issuance Reduction

The NEAR Protocol is considering another reduction in token issuance. A proposal put forth by Sal Ternullo, CEO of SVRN, would lower the network's maximum annual issuance rate from 2.5% to 1.6%, phased in over 24 months. This change could keep approximately 66 million NEAR tokens out of circulation, worth around $329 million at current prices.

The plan would gradually reduce the issuance rate in small increments every epoch, giving wallets, staking providers, and other ecosystem players time to adjust. The 90/10 split in issuance distribution would remain intact, with stakers receiving 90% of new issuance and the remaining 10% flowing to the treasury.

Validators and staking providers may face a trade-off, as the reduced issuance rate could lower their staking yields. Projected staking yields may fall from about 5.4% to 3.5% once the new target rate is reached.

The proposal is currently open for discussion on the NEAR Governance Forum, with a full technical proposal expected to follow. A vote by the House of Stake, NEAR's governance body, is tentatively scheduled for mid-October 2026.