The Aptos Foundation has unveiled a significant proposal to restructure the native APT token's economic model, focusing on inflation reduction and supply control. The initiative aims to transition from an early "Bootstrap system" to a model prioritizing network usage, transaction fees, and a managed supply.
Central to the proposal is a hard cap of 2.1 billion APT tokens. Currently, approximately 1.196 billion APT are in circulation. The cap would limit future distribution to just over 900 million APT. Once the supply limit is reached, network validators will primarily earn rewards from transaction fees.
Staking rewards are slated for reduction, moving from an annual rate of 5.19% to a proposed 2.6%. The new model will also offer incentives for long-term token staking.
Additionally, Aptos plans a tenfold increase in network fees. Despite this adjustment, stablecoin transfers are expected to remain extremely cost-effective at approximately $0.00014 per transaction. A key mechanism in this overhaul is the burning of gas fees, permanently removing tokens from circulation.
The Foundation also intends to establish a permanent staking reserve of 210 million APT, using these rewards for operational funding instead of market sales. This includes exploring the creation of an APT reserve fund and a potential future buyback program, designed to decrease selling pressure and strengthen long-term supply management.
Aptos joins other major blockchain projects like Aave, Injective, and Uniswap in revising their token models to combat inflation and boost sustainability. Approval of this proposal could enhance token scarcity and shift revenue generation towards genuine network usage, thereby curbing inflation.