The Aptos Foundation proposes to overhaul APT tokenomics, introducing a supply cap and reducing emissions to enhance deflationary measures.
The Aptos Foundation has unveiled plans to significantly revamp its tokenomics in a bid to enhance the deflationary aspects of the APT cryptocurrency.
This proposal includes a shift from the current subsidy-based token emission model to one that aligns more closely with network activity. A notable feature of the overhaul is the introduction of a supply cap of 2.1 billion APT tokens, with 1.196 billion currently in circulation. Previously, there was no upper limit on token emissions.
Significant Reduction in Token Emission
As part of this restructuring, the Aptos Foundation aims to reduce annual token issuance by 60% following the completion of the next four-year cycle in October. This change is expected to alleviate market pressures that arise from large token unlocks, which have been diminishing in impact.
The foundation highlighted the maturation of the ecosystem, underscored by substantial investments from major firms like BlackRock and Franklin Templeton, indicating a need for more stable tokenomics.
“If nothing changes, the emission will continue indefinitely—without a hard cap, performance linkage, or any connection to real network activity,” the foundation stated.
Additional Measures Proposed
In addition to the emission cap, developers are recommending a reduction in the annual staking rate from 5.19% to 2.6%, while also introducing higher rewards for long-term token holders. This aims to manage staking-related emissions and reward committed participants.
Other proposed measures include:
- Increasing gas fees by tenfold. The foundation believes that even with this increase, transaction costs will remain competitive, and since these fees are burned, it will add further deflationary pressure.
- Permanently locking tokens. The foundation plans to lock 210 million APT in staking, effectively removing them from circulation. The rewards generated will fund the foundation's operations.
- Tightening grant policies. Implementing stringent KPIs for grant recipients to ensure effective use of resources.
- Exploring a buyback program. The Aptos team is considering establishing a reserve or initiating an APT buyback to stabilize market supply.
Following the announcement, APT's market value fell by 4.1%, with the token losing nearly 46% of its value over the past month, currently trading at approximately $0.8.
