The primary goal of the proposal is to reduce the dilution of the $NEAR supply and the selling pressure that newly produced tokens might create. The protocol party argues that the need for incentives during the network’s initial phase has largely ended and that the current validator capacity exceeds demand.
Calculations suggest that the change could prevent the production of approximately 11.8 million $NEAR in the first two years. Over the six-year period, this amount is expected to reach 66.1 million $NEAR, with total supply remaining approximately 4.36 percent lower than current plans. Following full implementation, daily production is estimated to fall from approximately 89,500 $NEAR to 57,300 $NEAR.
Lower production will also affect staking rewards. If the participation rate remains unchanged, it is estimated that the gross staking yield could decrease from 5.268% to 3.372%.
The decision is not yet binding. It requires review by the House of Stake Security Council, followed by a 90-day waiting period. The final stage will involve validators approving the protocol update. Therefore, the change should be considered a governance decision still undergoing approval, not a finalized network update.
*This is not investment advice.
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