Odaily Planet Daily News: On November 2, NEAR Protocol’s governance body, House of Stake, passed Proposal HSP-029 with approximately 99.96% support, representing 3.29 million veNEAR voting power. The proposal aims to gradually reduce the annual token issuance cap from 2.5% to 1.6% over 24 months, with an average monthly decrease of 0.0375 percentage points.
The proposal, initiated by Sal Ternullo, CEO of Nasdaq-listed company SVRN, adjusts only one protocol parameter while maintaining the existing allocation ratios: 90% of newly issued tokens will be allocated to stakers, and 10% will go to the treasury. The proposal also requires approval from the House of Stake Security Committee and will be implemented after a 90-day preparation period and completion of the protocol upgrade by validators.
Model estimates suggest that, based on the original issuance cap, approximately 11.8 million NEAR tokens will be issued less over the first two years after implementation, and approximately 66.1 million NEAR tokens less over six years. Upon full implementation, daily issuance is expected to decrease from about 89,500 to 57,300 NEAR; under the assumption of similar staking participation rates, the gross staking yield is projected to drop from 5.268% to 3.372%, and validator commission income is expected to decline by 36%. (Bitcoin.com News)