NEAR Protocol halves new token issuance… annual inflation rate reduced to 2.5%

NEAR Foundation reduced the amount of newly issued NEAR coins by half through a network upgrade. This move is interpreted as a policy adjustment to make the NEAR ecosystem's tokenomics (token economic structure) more stable and to lay the groundwork for long-term growth.

On the 1st (local time), NEAR Foundation said that through this upgrade the maximum annual inflation rate of NEAR has been lowered from 5% to 2.5%. This has the effect of cutting the amount of newly issued coins in half. The proposal passed with about 80% of all validators voting in favor, and currently all nodes have switched to the latest version (2.9.0).

NEAR Foundation also prepared an annual support budget of 100,000 NEAR to enhance network stability and decentralization. Additionally, it introduced a pilot program that provides rewards to governance participants, and 'veNEAR' participants can receive rewards at an annual rate of 4.2~4.5%.

A NEAR Protocol official said, "This reduction in issuance is an important measure to improve the network's long-term sustainability and market confidence," and added, "We have made the reward structure between validators and participants more transparent."

This decision was officially approved through NEAR's on-chain governance system 'House of Stake'. NEAR has grown into a blockchain ecosystem where about $1 billion (about 14.3 trillion won) moves every month, and recently it has been unveiling new projects that incorporate artificial intelligence (AI) technology one after another.

Bowen Wang, NEAR Protocol Chief Technology Officer (CTO), said, "This decision fundamentally improves NEAR's token issuance structure and meaningfully strengthens both market stability and decentralization," adding, "A foundation for sustainable ecosystem expansion has been established."