Proposal HSP-029 maintains NEAR Protocol's split of newly issued tokens, directing 90% to stakers and 10% to the protocol treasury, with no added spending or validator subsidies

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NEAR Protocol's House of Stake voted to approve proposal HSP-029, lowering the network's maximum annual token issuance from 2.5% to 1.6%

The implementation of NEAR Protocol's lower issuance cap begins with a roughly 90-day grace period following ratification by NEAR Protocol's Security Council and validator protocol upgrade adoption

SVRN CEO Sal Ternullo said NEAR Protocol staking yields are expected to fall from approximately 5.27% gross to 3.37% as new token emissions decrease

NEAR Protocol's existing 2.5% annual issuance cap remains active until NEAR Protocol's Security Council ratifies proposal HSP-029 and network validators adopt the required upgrade

Following the 90-day grace period under proposal HSP-029, NEAR Protocol will gradually step down token issuance over a 24-month transition period until reaching the final 1.6% maximum cap

Modeling indicates NEAR Protocol will issue about 11.8 million fewer NEAR tokens over two years and 66 million fewer over six years under the 1.6% cap set by proposal HSP-029

The approval of proposal HSP-029 marks the second time NEAR Protocol has lowered its token issuance ceiling, following an initial reduction from 5% to 2.5% in late October 2025

Under proposal HSP-029, daily token issuance on NEAR Protocol is projected to decrease from approximately 89,500 NEAR per day to around 57,300 NEAR at full implementation

Proposal HSP-029 aims to continue NEAR Protocol's monetary policy shift in a phased manner rather than through an abrupt economic shock to stakers and non-stakers

Lowering NEAR Protocol's issuance ceiling is designed to reduce token dilution for passive holders who do not earn staking rewards

Coinbase Chief Legal Officer Molly Abraham stated that New Jersey users missed millions of dollars in staking rewards over three years, while Coinbase previously estimated those missed state rewards at over $15 million

In its October 29, 2026 quarterly filing, Coinbase warned that losing its remaining state-level enforcement cases in California, Maryland, Wisconsin, and Washington could materially hurt its business

The U.S. Securities and Exchange Commission agreed in February 2025 to drop its federal lawsuit against Coinbase regarding the exchange's crypto staking service

State securities regulators in Alabama, Illinois, Kentucky, South Carolina, and Vermont dropped their respective regulatory actions against Coinbase's staking service during 2025

California led a ten-state regulatory task force behind the 2023 staking enforcement actions against Coinbase, which affected over 600,000 accounts held by California residents

Coinbase Chief Executive Officer Brian Armstrong stated that New Jersey users will regain access to Coinbase's crypto staking service very soon following the state's October 30, 2026 order rescission

In May 2025, U.S. Securities and Exchange Commission staff issued non-binding guidance stating that protocol staking generally does not involve securities, though Commissioner Caroline Crenshaw publicly dissented from that position

In June 2023, 145,270 New Jersey residents were using Coinbase's staking service when the New Jersey Bureau of Securities alleged that the service constituted an unregistered security

California, Maryland, and Wisconsin continue to enforce agreements barring Coinbase from offering new staking services, while Washington state maintains an active regulatory enforcement action seeking a $4 million fine

In April 2025, Coinbase estimated that its users across multiple U.S. states had missed out on $90 million in staking rewards due to state-level regulatory restrictions