Reduction in Aptos Staking Yield Proposed to Reshape Economic Model – Coincu

Aptos community member moon shiesty has submitted the AIP-119 proposal, aiming to reduce staking annual yield by 1% monthly for three months. The proposal is under community review for further discussion.

The suggested reduction targets a decrease from around 7% to 3.79% and aims to address high staking yields that reportedly reduce capital efficiency. The proposal’s implications include a possible impact on validators with less than 3 million APT.

Proposals and Community Concerns Over Staking Yield Changes

The AIP-119 proposal seeks to adjust Aptos’s staking yield model, involving community member moon shiesty and Aptos Labs’ engineer Sherry Xiao. This proposal, if approved, suggests a gradual yield reduction to approximately 3.79% over three months.

Immediate implications focus on reducing capital diversion to high-risk DeFi activities. The proposal aims to restructure the current economic model by balancing yield reduction with potential new rewards mechanisms.

“The proposal must weigh immediate economic benefits with the long-term sustainability of all validators to ensure the network’s health,” noted a community contributor on GitHub.

Historical Context and Market Dynamics in Aptos

Did you know? Past adjustments in staking rewards, like those on NEAR and Cosmos, have sought to balance ecosystem participation without adversely affecting network security and capital efficiency.

As of April 19, 2025, Aptos (APT) trades at $4.92 with a market cap of $3.04 billion and market dominance of 0.11%. Recent movements show a 4.30% increase over 24 hours, while 90-day data reveal a significant 43.82% price drop. Data courtesy of CoinMarketCap.

Coincu research highlights the prospects of reduced yields leading to lower inflation, encouraging more sustainable DeFi participation. Historical trends suggest potential for stabilizing network economics post-adjustment, if appropriately managed through community and developer collaboration.