NEAR Proposal Seeks to Cut Annual Token Issuance by 36%

The NEAR network is facing an internal debate following the introduction of proposal HSP-029. The text suggests a 36% cut to the maximum annual token issuance cap. The current 2.5% rate would drop to 1.6% if validators approve the measure.

The plan includes a 90-day grace period after ratification. Following that, a gradual adjustment would take place over 24 months. Reward allocations would remain split between 90% for stakers and 10% for the network treasury.

Recent data shows that the blockchain's total supply grew by approximately 2.69 million units between September and October. This increase reflects the current issuance dynamics that the proposal aims to restrict. Full implementation of the schedule would take about 27 months.

Network validators hold divided opinions on how this change will impact the asset's economy. The proposal focuses on reducing future dilution while maintaining the structure where purchased or locked tokens remain part of the total supply. The protocol continues to operate under the 2.5% setting as the debate progresses.

Altering the monetary policy of a decentralized network can increase volatility risks and change how digital asset holders perceive value.