On April 18, 2025, a significant proposal emerged within the Aptos community, aiming to reduce staking rewards for the APT token from the current 7% to 3.79% over a three-month period. This proposal, labeled AIP-119, was introduced by community members Sherry Xiao and MoonShiesty, intending to align Aptos's staking yields with other Layer-1 blockchains and enhance capital efficiency.
📉 Proposal Details and Objectives
The core objective of AIP-119 is to decrease the annual staking reward rate to 3.79%, thereby reducing inflation and promoting long-term network sustainability. Proponents argue that this adjustment would make Aptos more competitive and efficient in the broader blockchain ecosystem .
⚖️ Community Concerns and Opposition
Despite the intended benefits, the proposal has faced pushback from community members concerned about its potential impact on smaller validators. Critics argue that halving staking rewards could disproportionately affect smaller operators, potentially leading to centralization and undermining the network's decentralization ethos .
To address these concerns, the proposal includes a delegation program designed to support smaller validators through funding and staking opportunities. However, some community members, such as ElagabalxNode, have expressed skepticism, suggesting that the measures may not be sufficient to mitigate the adverse effects on smaller participants .
đź“Š Comparative Staking Yields
Currently, Aptos offers a 7% staking reward, which is higher than Ethereum's 3.1% but lower than Cosmos's 15%. The proposed reduction would bring Aptos's rewards closer to Ethereum's, potentially affecting its attractiveness to stakers seeking higher yields