19-4-2025 – Aptos blockchain is contemplating a significant reduction in its staking rewards, with proposed cuts from 7% to 3.79% over a quarterly period.
The initiative, dubbed AIP-119, emerges from the collaborative efforts of Aptos Labs’ head of production engineering, Sherry Xiao, and Mirage protocol developer Moon Shiesty. Their vision suggests that lowered staking yields could prompt participants to explore more dynamic opportunities within the ecosystem.
Whilst Aptos’ current 7% yield surpasses Ethereum’s 3.1%, it remains notably modest compared to Cosmos’ 15% returns for ATOM stakers. The rate sits comparably with Avalanche’s AVAX offering of 7.6%.
The proposal has sparked considerable discourse regarding network decentralisation. Smaller validators have voiced concerns about their operational viability, with one node operator cautioning that reduced inflation, without compensatory mechanisms, could imperil network resilience.
Shiesty advocates for the implementation of a stake delegation programme mirroring Solana’s model to support affected validators. He emphasises the importance of diversifying revenue streams through RPC, MEV, bundles, and indexing services, suggesting these represent more sustainable ecosystem returns than emission-based yields.
The timing proves particularly intriguing, following Solana’s recent rejection of SIMD-228, a proposal aimed at implementing dynamic inflation rates. The unprecedented voter turnout highlighted the cryptocurrency community’s keen interest in governance matters affecting network economics.
Distinguishing their approach, Shiesty clarifies that unlike Solana’s stability-focused initiative, AIP-119 specifically targets reward reduction. He notes Aptos’ historically stable staking rates, suggesting immediate inflation stabilisation remains a lower priority.
The proposal encompasses a four-week community consultation period before mainnet consideration. Xiao further suggests a review of existing stake delegations, potentially removing less engaged validators to better align with network growth objectives.
Early indicators suggest substantial community backing for the initiative, though its ultimate impact on network dynamics remains to be seen. The proposal exemplifies the delicate balance between incentivising network participation and fostering sustainable ecosystem development.
