NEAR token drops 7% as $45M issuance cut passes

• NEAR Protocol community approves proposal to reduce annual token issuance by $45 million over 24 months.
• NEAR token price falls 7% following announcement, extending weekly losses despite near-unanimous vote support.

On Nov. 4, 2026 (UTC), CoinDesk reported that the NEAR Protocol community passed proposal HSP-029, reducing maximum annual token issuance from 2.5% to 1.6% over the next 24 months. Backed by 99.9% of votes, the decision will prevent approximately 11.8 million NEAR ($45 million at current prices) from entering circulation, aiming to curb inflation and future dilution.

Immediately after the announcement, NEAR’s price dropped 7% to $3.82 and extended its weekly decline to nearly 13%, according to The Block. Analysts linked the sell-off to lowered staking yields and profit-taking. The proposal will decrease gross staking yields from 5.2% to 3.3% during the rollout, per BloomingBit.

Implementation is not immediate. The proposal faces a 14-day Security Council veto window, followed by a 90-day grace period before validators must apply a technical upgrade for the issuance reduction.

Industry observers note the changes align NEAR’s monetary policy with competitors like Solana, which has also reduced token inflation. Smooth upgrades, validator support, and network activity will be key to boosting investor confidence and sustaining valuation, according to Cointelegraph.

As of Nov. 4, 2026, 02:09 UTC, NEAR Protocol (NEAR) trades at $3.785, with a 0.97% decline in 24-hour trading volume, based on the latest market data.