The Aptos Foundation is initiating a major overhaul of its tokenomics strategy for the APT token, introducing governance proposals designed to accelerate deflation.
The proposed changes aim to move the ecosystem from its current subsidy-based emission model to one driven by network performance and reduced APT supply. The foundation states the network is transitioning to tokenomics that align supply mechanics with utilization, replacing bootstrap-era subsidies with mechanisms tied to transaction activity. This framework is designed to enable token burns to outpace emissions as high-throughput applications scale.
A key proposal includes setting a hard cap of 2.1 billion APT tokens, as the current supply has no maximum. The foundation highlighted that while 1.196 billion APT are currently in circulation, the ecosystem's maturation, with significant institutional investment, necessitates a more sustainable tokenomics model.
Proposed policy changes include lowering annual staking rewards from 5.19% to 2.6%, with increased rewards for longer staking commitments. This is expected to reduce overall staking emissions while incentivizing long-term participation.
Furthermore, the Aptos team is advocating for a tenfold increase in gas fees. Since gas fees paid in APT are burned, this would contribute to reducing emissions. The foundation argues that even with this increase, Aptos would maintain the world's lowest transaction fees for stablecoins, making it ideal for high-volume transactions.
Additionally, the foundation proposes permanently locking 210 million APT tokens for staking, functionally equivalent to a token burn, with these rewards to fund foundation operations. Grant policies will also be revised with stricter Key Performance Indicators (KPIs) for token issuance. The foundation is also exploring a token buyback program or APT reserve to manage supply.