Discussions within the NEAR Protocol community kicked off on September 30, 2026, regarding a proposal to lower maximum annual token issuance from 2.5% to 1.6%, featuring a phased rollout over 24 months if approved.

Projected Issuance Reduction Roadmap and Accompanying Conditions

The plan proposed by SVRN CEO Sal Ternullo outlines issuance cuts on an epoch-by-epoch basis rather than immediate changes. To help staking services, crypto wallets, and relevant stakeholders adapt in time, the roadmap incorporates a 90-day preparation window.

Regarding the allocation structure, new token issuance would maintain a 90% share for stakers and 10% for the treasury. Although governance mechanisms would permit pausing the reduction process, the proposal’s design explicitly specifies that it cannot be reversed to increase issuance rates again. It should be noted that this remains merely an option under discussion and is not yet officially implemented.

It is projected that if the plan is approved, approximately 66 million NEAR will not be newly created. This purely represents projected supply that avoids issuance, not circulating tokens being clawed back or burned. This figure is not converted into USD because reference prices from older sources do not accurately reflect current value.

Two-Way Impact Between Reduced Dilution Pressure and Staking Rewards

Cutting the annual issuance rate benefits holders as new token supply entering the market declines, thereby curbing value dilution. However, the perspective of network validators is more complex: their nominal yields will drop noticeably. Both aspects require a comprehensive perspective, and one should not jump to the conclusion that lowering issuance will automatically drive up prices.

Once issuance reaches the target level, estimated staking yields could decline from 5.4% to around 3.5%. Note that this figure is a projection and does not constitute a guaranteed reward rate or a fixed applied percentage. At the same time, because the treasury receives a fixed cut of new supply, the volume of tokens allocated to it will also decrease accordingly as overall issuance shrinks.

Based on recorded information, a community feedback process will be conducted before drafting a complete technical specification and awaiting approval from the House of Stake. Notably, a roadmap toward a fixed total supply remains merely a long-term direction and is not within the scope of the current phase. The core priority now is tracking the final governance proposal and official voting results, avoiding confusing media expectations with verified policy outcomes.