The proposal, introduced by SVRN CEO Sal Ternullo, suggests reducing the maximum annual token issuance rate from 2.5% to 1.6%. This transition would be implemented gradually over a 24-month period, with small adjustments occurring at every epoch.
If the change is adopted, approximately 66 million NEAR tokens, valued at roughly $329 million at current prices, would not enter circulation. The current distribution model, which allocates 90% of new issuance to stakers and 10% to the treasury, will remain unchanged.
The plan includes a 90-day grace period for ecosystem participants to adapt. Governance mechanisms will allow for the reduction to be paused, but not reversed. Once the new target rate is achieved, projected staking yields are expected to decline from 5.4% to 3.5%.
This initiative follows a previous reduction in issuance from 5% to 2.5%, which was implemented in late 2025 via the nearcore v2.9.0 upgrade and received 80% support from validators. The long-term goal is to move toward a fixed total supply.
Community discussions on the NEAR Governance Forum began on September 30, 2026. A final vote by the House of Stake is tentatively scheduled for October 11, 2026, following a period of feedback from validators and the broader community.
