NEAR Protocol (NEAR) fell 8.50% to $3.67 as of 11:12 p.m. ET Thursday (04:12 UTC Friday) as House of Stake voters backed a proposal to lower the network's maximum annual issuance target from 2.5% to 1.6%.
The House of Stake's official vote listing shows HSP-029 as “Succeeded,” with 99.96% support. The proposal sets a 24-month ramp toward the lower target and projects avoiding 11.8 million NEAR in issuance over two years compared with the current path.
The vote does not put the lower rate into effect by itself. HSP-029 calls for a Security Council review and ratification, followed by a one-quarter grace period and validator adoption before the ramp can begin. Approval is one stage in the proposed change; the network's issuance rules have not changed through the vote alone.
CoinGecko and exchange spot feeds showed Bitcoin (BTC) down 5.92% and Ether (ETH) down 7.87% over the same 24-hour period, based on the 11:12 p.m. ET Thursday (04:12 UTC Friday) snapshot. NEAR's decline was steeper than either asset's.
The proposal describes potential gains and costs across the network. It says holders who do not stake could benefit from reduced dilution, while staking holders may receive lower rewards and some validators could face reduced economic viability. These are potential effects outlined in HSP-029, not outcomes established by the vote.
The target governs how much new NEAR is created each year, and some of that issuance funds validator rewards. A lower target would reduce additions to supply and one source of validator compensation. The proposal cites a change to Solana's issuance as a precedent and discusses dilution and validator rewards in NEAR's case.
The next steps named in the proposal are Security Council review and ratification, then a one-quarter grace period and validator adoption.
