{"id":61020,"date":"2026-11-04T08:19:14","date_gmt":"2026-11-04T08:19:14","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=61020"},"modified":"2026-11-04T08:19:14","modified_gmt":"2026-11-04T08:19:14","slug":"near-annual-production-to-decrease-by-1-6-details-explained","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/near-annual-production-to-decrease-by-1-6-details-explained\/","title":{"rendered":"NEAR Annual Production to Decrease by 1.6%: Details Explained"},"content":{"rendered":"
\n

<\/span>NEAR Protocol Plans Significant Reduction in Token Production<\/span><\/h2>\n

The NEAR Protocol is set to undergo a major shift in its tokenomics after the governance body, House of Stake, approved proposal HSP-029. This proposal aims to lower the maximum annual token production rate from 2.5% to 1.6%, a change that will be implemented over a two-year period.<\/p>\n

<\/span>Details of the Proposal<\/span><\/h3>\n

Under the new plan, the production rate will decrease by about 3.75 basis points each month, ultimately reaching the target of 1.6% by the end of the two years. The existing distribution model will remain intact, with 90% of newly produced tokens allocated to staking participants and 10% directed towards the protocol treasury.<\/p>\n

<\/span>Objectives Behind the Change<\/span><\/h3>\n

The primary motivation for this reduction is to mitigate the dilution of NEAR\u2019s supply and reduce the selling pressure from new tokens entering the market. Proponents of the proposal argue that the incentives that were critical during the network\u2019s early days are no longer necessary, as validator capacity currently exceeds demand.<\/p>\n

<\/span>Projected Outcomes<\/span><\/h3>\n

According to calculations, implementing this proposal could prevent the generation of approximately 11.8 million NEAR tokens within the first two years. Over a six-year period, this number is expected to balloon to around 66.1 million tokens, thereby keeping the total supply of NEAR roughly 4.36% lower than previous estimates. Following full implementation, daily production is projected to decline from around 89,500 NEAR to approximately 57,300 NEAR.<\/p>\n

<\/span>Impact on Staking Rewards<\/span><\/h3>\n

This reduction in production rates will also have implications for staking rewards. If the participation rate remains stable, it is estimated that the gross staking yield could decrease substantially, from 5.268% to 3.372%.<\/p>\n

<\/span>Next Steps<\/span><\/h3>\n

It is important to note that this decision is not yet final. The proposal must undergo a review by the House of Stake Security Council and will then enter a 90-day waiting period. Final approval will require consent from the validators, indicating that the initiative is still in the governance phase and has not yet been fully executed.<\/p>\n

This is not investment advice.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

NEAR Protocol Plans Significant Reduction in Token Production The NEAR Protocol is set to undergo a major shift in its tokenomics after the governance body, House of Stake, approved proposal HSP-029. This proposal aims to lower the maximum annual token production rate from 2.5% to 1.6%, a change that will be implemented over a two-year […]<\/p>\n","protected":false},"author":14,"featured_media":61021,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"NEAR Annual Production to Decrease by 1.6%: Details Explained - Bitrabo","description":"NEAR Protocol Plans Significant Reduction in Token Production The NEAR Protocol is set to undergo a major shift in its tokenomics after the governance body, Hou"},"_slim_seo_primary_term_category":0,"_slim_seo_primary_term_post_tag":0,"footnotes":""},"categories":[316],"tags":[5367,1310,1128,1806,1995,984,1261,762],"class_list":["post-61020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-annual","tag-change","tag-critical","tag-decision","tag-details","tag-drop","tag-production","tag-supply"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/61020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=61020"}],"version-history":[{"count":1,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/61020\/revisions"}],"predecessor-version":[{"id":61022,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/61020\/revisions\/61022"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/61021"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=61020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=61020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=61020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}