Aptos
Aptos|May 08, 2025 19:00
𝗜𝗖𝗬𝗠𝗜: 𝗔𝗜𝗣-𝟭𝟭𝟵 𝗖𝗌𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗥𝗲𝘃𝗶𝗲𝘄 𝗥𝗲𝗰𝗮𝗜 🌐 @moon_shiesty & @sherry_apt led the first AIP-119 Community Review, addressing key questions and feedback from the Aptos community about AIP-119. Here's what you missed—and where the proposal stands now 👇 🔍 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗔𝗜𝗣-𝟭𝟭𝟵? AIP-119 proposes reducing the APT staking reward rate from 6.8% to 3.8% over 3 months, reducing it by 1% each month. 💡 𝗧𝗵𝗲 𝗥𝗮𝘁𝗶𝗌𝗻𝗮𝗹𝗲 𝗕𝗲𝗵𝗶𝗻𝗱 𝗔𝗜𝗣-𝟭𝟭𝟵 The goals behind AIP-119 are to: • Redirect APT toward other priorities in the ecosystem • Encourage innovation in how APT is used and how yield is generated • Reduce APT inflation 🗣 𝗖𝗌𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗙𝗲𝗲𝗱𝗯𝗮𝗰𝗞 & 𝗞𝗲𝘆 𝗀𝘂𝗲𝘀𝘁𝗶𝗌𝗻𝘀 Alternative approaches suggested by the community: • Slowing the reduction (e.g., cutting 0.5% every 2–3 months) • Implementing dynamic rates that adjust based on total staking activity (i.e, when staking rate is too low, automatically raise the staking reward rate, and vice versa) Q: Will a lower rate hurt smaller validators? A: Some smaller validators may be discouraged due to reduced income. Possible mitigations include: • Increasing delegation from the Foundation • Shortening lockup periods to encourage more community staking Q: Will stakers move to higher-yield platforms? A: Possibly—but it's worth noting: • Many higher-yield options already exist, yet over 75% of outstanding APT is currently being staked • A 3.8% staking reward aligns with other L1s like Ethereum • Many validators are long-term committed to securing Aptos 🀝 𝗛𝗌𝘄 𝗔𝗜𝗣-𝟭𝟭𝟵 𝗔𝗹𝗶𝗎𝗻𝘀 𝘄𝗶𝘁𝗵 𝗕𝗿𝗌𝗮𝗱𝗲𝗿 𝗘𝗰𝗌𝘀𝘆𝘀𝘁𝗲𝗺 𝗚𝗿𝗌𝘄𝘁𝗵 AIP-119 complements other Aptos Foundation efforts, including: • 200M+ allocated to DeFi grants and investments in 2025 • The LFM program, supporting TGE-ready projects with marketing and strategy • A push for stablecoin liquidity and infra upgrades as the Global Trading Engine: https://x.com/AveryChing/status/1907866088186196417 AIP-119 aims to create new ways to use and earn APT tokens, such as: • The development of new and creative applications to seek out extra APT yield • APT-based incentive campaigns • Directing more activity towards "under-the-radar" yield sources around the ecosystem ⏩ 𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁? The review session wrapped with these action items & next steps: • Continue collecting and addressing community feedback: https://github.com/aptos-foundation/AIPs/issues/587 • Refine the proposal to reflect that input • Submit the final proposal for on-chain community vote (est. May 20 – subject to change) Thanks for staying involved and helping shape the future of Aptos—powered by the community, for the community 💪🌐 Stay tuned for AIP-119 updates, coming soon.
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