NEAR token sinks 7% as proposal to cut annual token issuance passes

MarketsPublishedNov 3, 2026The proposed issuance cut would prevent 11.8 million NEAR from entering circulation over two years, worth about $45 million at today’s price.Near Protocol’s NEAR token fell by roughly 7% on Tuesday, despite community approval of a proposal to gradually reduce the maximum annual issuance rate from 2.5% to 1.6% over 24 months.NEAR traded at $3.82 as of 11:06 am UTC, extending its weekly decline to roughly 13%, according to CoinMarketCap.The latest drop followed Monday’s approval of HSP-029, which received support from 99.9% of participating voting power. About 3.28 million vote-escrowed NEAR (veNEAR) tokens were cast in favor, according to the NEAR House of Stake governance platform.The proposal would 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. It estimates that issuance would fall by 11.8 million NEAR over two years and 66.1 million NEAR over six years.The proposal remains subject to the Security Council’s 14-day veto window. If not vetoed, it will be ratified, followed by a 90-day grace period before the issuance reduction begins. Implementation also requires validators...