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Anticipated Proposal for the Big Altcoin Arrives: If Passed, It Could Seriously Reduce Token Inflation

source-logo  en.bitcoinsistemi.com 19 April 2025 01:48, UTC
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The Aptos ($APT) community is currently reviewing a new governance proposal, AIP-119, which proposes a gradual reduction of the network’s staking yield.

The proposal, submitted by community member Moon Shiesty, proposes reducing the annual staking yield by 1% every month for the next three months, eventually dropping it to around 3.79%.

According to details shared on the Aptos governance page, AIP-119 serves as the first step in a broader effort to restructure the Aptos economic model. The yield adjustment is scheduled to occur within three months, while the overall impact of the proposal will be evaluated over a six-month period to allow for community feedback and performance evaluation.

The proposal argues that the current ~7% staking yield is excessively high, limiting capital efficiency and pushing participants towards higher-risk strategies such as re-staking, DePIN infrastructure, MEV (Miners’ Extractable Value), and DeFi incentives. While a lower staking reward could reduce the appeal of holding $APT, the proposal notes that this could be offset by reducing inflation and developing alternative reward systems.

One concern addressed in the proposal is the potential impact on small validators. AIP-119 proposes the creation of a community staking initiative to support validators with less than 3 million $APT and encourages the community to develop more sustainable, long-term incentive mechanisms.

The proposal will undergo community and foundation review over the next four weeks, with a mainnet vote expected in the fifth week.

*This is not investment advice.

en.bitcoinsistemi.com