TLDR:
- Aptos Foundation proposes cutting annual staking rewards from 5.19% to 2.6% to reduce long-term token emissions.
- A hard protocol-level cap of 2.1 billion APT will permanently limit total supply once approved through governance.
- Decibel DEX’s fully onchain execution model is projected to burn over 32 million APT annually at 100+ markets.
- Aptos Foundation will permanently stake 210 million APT, removing nearly 18% of circulating supply from distribution.
Aptos tokenomics is undergoing a structural overhaul designed to replace bootstrap-era subsidies with performance-linked supply mechanics.
The Aptos Foundation has outlined seven reform proposals tied to network activity, burn rates, and staking adjustments.
These changes target a crossover point where token removals exceed new token issuance. With major institutions already active onchain and a new decentralized exchange launching, the network is positioning itself for an institutional-grade economic model.
Hard Supply Cap and Staking Rate Cuts Anchor the Reform
The most definitive change proposed is a hard protocol-level cap of 2.1 billion APT. Currently, 1.196 billion APT circulate with no ceiling on future minting. The cap would close that open-ended issuance permanently once approved through governance.
Alongside the cap, the Aptos Foundation plans to propose cutting the annual staking reward rate from 5.19% to 2.6%.
The prior rate had already been reduced via AIP-119. This further cut aims to slow new token issuance without removing validator incentives entirely.
“Aptos Foundation believes it is critical to balance strong validator incentives with long-term supply discipline.” — Aptos Foundation
To balance the reduction, the Foundation is exploring a tiered staking model. Participants committing to longer lock-up periods would receive higher reward rates than short-term stakers.
Validator costs are also expected to drop through new architecture proposed in AIP-139, keeping operations viable even at lower reward rates.
Gas Fee Increase and Decibel DEX Drive Burn Acceleration
Aptos tokenomics reform also targets the burn side of the equation through a proposed 10x gas fee increase. All transaction fees on Aptos are permanently burned, so raising fees directly accelerates APT removal from circulation. Even after the increase, stablecoin transfers would cost roughly $0.00014, remaining the lowest globally.
The launch of Decibel, a fully onchain decentralized exchange incubated by Aptos Labs, adds a structural burn mechanism.
Unlike most DEX platforms, Decibel executes every order, match, and cancel onchain. That architecture generates high transaction volume continuously, which translates directly into sustained APT burns.
“The more markets listed and products supported by Decibel, the higher operational TPS is necessary. As Decibel approaches 100+ markets going into next year, it is projected to burn over 32 million APT per year.” — Aptos Foundation
At scale, Decibel is projected to burn over 32 million APT annually as it approaches 100 active markets. As throughput grows toward 10,000 TPS and beyond, that figure scales commensurately.
Together with the gas fee increase, this creates compounding deflationary pressure tied directly to trading activity.
Foundation Lock-Up, Buybacks, and Performance Grants Complete the Framework
The Aptos Foundation has committed to permanently staking 210 million APT, removing those tokens from any future sale or distribution. This represents roughly 18% of the current circulating supply.
The Foundation will fund its operations through staking rewards on these locked tokens rather than token sales.
“This is functionally equivalent to a token burn with 210 million APT removed from any sale or distribution.” — Aptos Foundation
On top of that, the Foundation is exploring a programmatic buyback program. The program would use cash reserves and revenue from licensing and ecosystem investments to purchase APT in the open market. Buyback timing would be based on market conditions rather than a fixed schedule.
Grant issuance is also being restructured around milestone-based vesting. Future grants tied to Aptos’s global trading engine positioning will only vest when specific performance targets are met.
If KPIs are missed, grants are deferred, not canceled, until those targets are achieved. This directly links token issuance to measurable network outcomes.
Taken together, these mechanisms are intended to create a crossover point where APT burned and locked consistently exceeds APT issued.
Natural unlock reductions are already underway, with the four-year investor and contributor unlock cycle concluding in October 2026, cutting annualized supply unlocks by 60%. Foundation grant distributions are also falling over 50% year-over-year from 2026 to 2027.
The combination of those natural dynamics with the proposed structural reforms positions APT supply for a sustained deflationary trajectory as high-throughput financial applications continue to scale on the network.
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