NEAR Protocol Approves Issuance Cut From 2.5% to 1.6% Over Two Years

NEAR Protocol has announced that a proposal to reduce the maximum annual issuance rate of its native token $NEAR from 2.5% to 1.6% has passed.
The reduction will be implemented gradually over 24 months rather than taking effect immediately.
Once fully implemented, the change would lower the maximum annual issuance rate by 0.9 percentage points, representing a 36% reduction from the current level.
The adjustment is intended to slow the creation of new tokens, potentially reducing inflationary pressure on existing holders. However, lower issuance does not automatically translate into higher token prices, which also depend on demand, network activity and broader market conditions.
The gradual rollout gives the ecosystem time to adjust to the revised tokenomics, including any implications for staking rewards and validator incentives.