NEAR token sinks 7% as proposal to cut annual token issuance passes
The proposed issuance cut would prevent 11.8 million NEAR from entering circulation over two years, worth about $45 million at today’s price.
The NEAR token saw a 7% decline following the approval of a proposal to reduce the maximum annual issuance rate from 2.5% to 1.6% over 24 months. The reduction aims to limit the influx of 11.8 million NEAR tokens into circulation over two years, valued at approximately $45 million at current prices. Despite the community's overwhelming support for the proposal—99.9% of participating voting power cast in favor—NEAR's price has fallen 13% over the past week, down to $3.82.
The proposal, HSP-029, is set to reduce long-term token dilution while lowering projected gross staking yields from 5.2% to 3.3% by the end of the 24-month period. The change will undergo a 14-day Security Council review and a 90-day grace period before the issuance reduction takes effect.
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