Aptos AIP-119 Proposes Staking Yield Reduction – Coincu

Summarizing the proposal, community member moon shiesty suggests tapering Aptos’ staking annual yield by 1% monthly over the next three months to enhance capital efficiency. Stakeholders will evaluate the proposal’s impact during the review phase.

The proposed changes intend to lower excessive inflation, aiming to improve overall economic dynamics within the network. It anticipates adjustments in staking behaviors among validators.

Proposal to Cut Staking Yields and Enhance Capital Efficiency

The AIP-119 proposal submitted by moon shiesty seeks to reduce Aptos staking annual yield by 1% each month for three months. It aims to lower yields from the current 7% to approximately 3.79%, improving Aptos’s capital efficiency. This initiative is part of broader efforts to optimize its economic model. The community and Aptos Foundation are scheduled to review the proposal over a four-week period, with plans for a mainnet vote in the following week.

The proposed yield reduction is anticipated to shift capital flows within the network. By reducing staking rewards, the initiative seeks to balance inflation and incentivize productive use of Aptos tokens. Potential impacts on small validators are also considered, suggesting a community staking program for those with less than 3 million APT.

Market reactions note potential changes in staking participation, while official statements from senior Aptos executives or leading KOLs are currently absent. The proposal aligns with prior community adjustments, indicating a strategic approach to adapt Aptos’s incentive structures. As Moon Shiesty, the proposal author, stated, “The proposed reduction in staking yield aims to improve capital efficiency and curb excessive inflationary rewards.”

Market Dynamics and Strategic Adjustments in Aptos Ecosystem

Did you know? Aptos previously enacted AIP-30, implementing a 1.5% annual reduction in staking rewards over several years. This illustrates a consistent approach to managing network inflation and incentives.

As of April 18, 2025, Aptos (APT) holds a market cap of $2.90 billion, with the price at $4.69. Over the past 90 days, APT saw a 49.70% decline, per CoinMarketCap. The 24-hour trading volume stands at $91.31 million.

Coincu research indicates fundamental changes in the network’s economic strategy could influence broader market actions. Historical data suggest gradual yield adjustments within Layer 1 ecosystems, enhancing network resilience against economic volatility and aligning with community-driven goals.