NEAR Token Falls 8% Even After Community Backs Lower Issuance Rate

NEAR slid roughly 8% on Tuesday to $3.82 as of 11:06 am UTC, stretching its weekly loss to about 13%. The decline arrived one day after holders approved HSP-029, a plan to lower the maximum annual issuance rate from 2.5% to 1.6% over 24 months. Backing was almost unanimous, with 99.9% of participating voting power in favor and about 3.28 million veNEAR tokens cast.

The proposal estimates that issuance would be cut by 11.8 million NEAR over two years and by 66.1 million NEAR over six years.

Next Steps Before the Issuance Cut Starts

The proposal still faces a 14 day veto window run by the Security Council. If no veto comes, it will be ratified, and a 90 day grace period will follow before any reduction begins. Validators must also adopt the required technical upgrade before the change can take effect.