NEAR Protocol Drops 7% Despite Approval of Token Issuance Cut
Summary
- The NEAR Protocol community approved Proposal HSP-029 to lower the maximum annual token issuance rate to 1.6% from 2.5% over 24 months.
- The move will reduce token issuance by about 11.8 million tokens worth about $45 million over the next two years, while the cumulative issuance reduction over six years is estimated at about 66.1 million tokens.
- As the cut in issuance lowers expected staking yields to 3.3% from 5.2%, NEAR Protocol was trading at $3.89, down 6.89% from a day earlier.
Forecast Trend Report by Period
NEAR Protocol fell even after a proposal to reduce its annual token issuance was approved.
Cointelegraph reported on November 3 that the NEAR community approved Proposal HSP-029, which would lower the maximum annual token issuance rate to 1.6% from 2.5% over 24 months. The proposal received support from 99.9% of the voting power cast.
The move will reduce token issuance by about 11.8 million tokens over the next two years, equivalent to about $45 million at current prices. Over six years, the cumulative reduction is estimated at about 66.1 million tokens.
The lower issuance rate will also reduce expected staking yields to 3.3% from 5.2%.
The proposal now enters a 14-day veto period for the Security Council. If no veto is exercised, it will be finalized, and the issuance cut will begin after a 90-day grace period.
As of 9:30 p.m., NEAR was trading at $3.89, down 6.89% from a day earlier.
Uk Jin
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