NEAR Sinks 7% as Proposal to Cut Annual Token Issuance Passes
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The NEAR token experienced a 7% drop on Tuesday, following the community's approval of a proposal to reduce the maximum annual issuance rate. The proposal aims to cut the rate from 2.5% to 1.6% over 24 months, preventing 11.8 million NEAR (worth approximately $45 million) from entering circulation.
According to CoinMarketCap, NEAR was trading at $3.82 as of 11:06 am UTC, marking a weekly decline of roughly 13%. The proposal, known as HSP-029, received 99.9% support from voting power, with 3.28 million veNEAR tokens cast in favor.
The implementation of this proposal is subject to a 14-day veto window by the Security Council, followed by a 90-day grace period before the reduced issuance takes effect. Validators must also adopt the necessary technical upgrade.
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