NEAR Sinks 7% on $45M Supply Cut Approval

• NEAR Protocol approves proposal to reduce token issuance by $45 million over two years
• Token price drops 7% amid concerns over lower staking rewards for validators

On November 4, 2026 (UTC), BigGo Finance reported that NEAR Protocol’s token (NEAR) dropped 7% to $3.82 after the network approved a proposal to cut annual issuance by $45 million over two years. The proposal, HSP-029, will gradually lower the network’s maximum annual token issuance rate from 2.5% to 1.6% across 24 months. Community voting saw near-unanimous support, with 99.9% approval by voting power.

This policy intends to limit future token dilution by reducing new supply; if fully enacted, 11.8 million NEAR tokens—worth about $45 million—will not enter circulation over the two-year period. The goal is to protect long-term holders and balance supply growth.

However, despite strong community backing, the token saw a sharp sell-off. Traders expressed concern that reducing issuance would compress staking yields from 5.2% to 3.3%, potentially impacting validator incentives and causing uncertainty among those seeking high yields.

The policy is not implemented immediately. There is a 14-day Security Council veto window, after which a 90-day grace period and validator upgrade are required. Provided no veto is issued and technical upgrades proceed, the new issuance rate could begin following this timeframe.

NEAR’s rate reduction follows a broader trend among layer-1 blockchains; Solana adopted a similar schedule earlier in 2026, according to Cryptonomist. Layer-1 networks are recalibrating inflation to balance staking rewards and long-term token value, at the expense of near-term yield compression and price volatility especially among yield-focused investors.

As of November 4, 2026, 00:09 UTC, NEAR Protocol (NEAR) trades at $3.839, with a -0.613% change in 24-hour volume, according to CoinMarketCap.