Aptos Governance Proposal Aims to Slash Staking Yields and Restructure Economic Model
19.04.2025 12:46
The Aptos (APT) community is currently evaluating governance proposal AIP-119, which would gradually reduce the network’s staking yield by 1% per month for three months, lowering it from around 7% to approximately 3.79%. The proposal is the first step in a broader initiative to control inflation and improve capital efficiency by moving away from high-yield strategies. It also introduces a community staking initiative specifically designed to support smaller validators holding less than 3 million APT. The proposal will be under community and foundation review for the next four weeks, with a mainnet vote expected in the fifth week, and its long-term impact on the economic model will be monitored over a six-month period.
In the short term, APT may witness volatility as investors adjust to the prospect of lower staking rewards, which could reduce the appeal of holding APT for staking income. However, the long-term outlook appears positive if the reduction in staking yield successfully lowers token inflation and fosters a more sustainable economic model. This could lead to reduced supply inflation and increased scarcity, potentially bolstering demand and price stability. Key factors include the community’s reaction during the review period, the outcome of the mainnet vote, and broader market conditions that will determine the balance between immediate selling pressure and deferred value appreciation.
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