NEAR proposal slashes yield by 36%, dividing network validators
NEAR’s total supply increased by about 2.69 million tokens, or 0.206%, from Sept. 22 to Oct. 22, leaving the network inflationary over the period. Governance proposal HSP-029 would cut the annual issuance cap from 2.5% to 1.6%, a 36% reduction, while preserving the 90% staker and 10% treasury allocation. If ratified, it calls for a 90-day grace period and a gradual 24-month ramp, requiring validator adoption of a protocol upgrade. Modeling with staking participation held at 45.27% suggests the change would lower annualized staking rewards and validator commission income; actual outcomes depend on participation, fees and implementation. Buybacks do not reduce supply unless tokens are permanently burned, and future price effects remain uncertain.
