NEAR token sinks 7% as proposal to cut annual token issuance passes
Written by Zoltan Vardaistaff writerEdited by Yohan Yunstaff editorThe proposed issuance cut would prevent 11.8 million NEAR from entering circulation over two years, worth about $45 million at today’s price.
Near Protocol’s NEAR token fell by roughly 7% on Tuesday, despite community approval of a proposal to gradually reduce the maximum annual issuance rate from 2.5% to 1.6% over 24 months.
NEAR traded at $3.82 as of 11:06 am UTC, extending its weekly decline to roughly 13%, according to CoinMarketCap.
The latest drop followed Monday’s approval of HSP-029, which received support from 99.9% of participating voting power. About 3.28 million vote-escrowed NEAR (veNEAR) tokens were cast in favor, according to the NEAR House of Stake governance platform.
The proposal would reduce long-term token dilution while lowering projected gross staking yields from 5.2% to 3.3% by the end of the 24-month period. It estimates that issuance would fall by 11.8 million NEAR over two years and 66.1 million NEAR over six years.
The proposal remains subject to the Security Council’s 14-day veto window. If not vetoed, it will be ratified, followed by a 90-day grace period before the issuance reduction begins. Implementation also requires validators to adopt the necessary technical upgrade.
Related: THORChain’s RUNE jumps 13% after Binance’s record $6.3B hack
Subscribe to daily byte-sized crypto news from Cointelegraph
More on the subject
