Aptos
Aptos|May 08, 2025 19:00
๐—œ๐—–๐—ฌ๐— ๐—œ: ๐—”๐—œ๐—ฃ-๐Ÿญ๐Ÿญ๐Ÿต ๐—–๐—ผ๐—บ๐—บ๐˜‚๐—ป๐—ถ๐˜๐˜† ๐—ฅ๐—ฒ๐˜ƒ๐—ถ๐—ฒ๐˜„ ๐—ฅ๐—ฒ๐—ฐ๐—ฎ๐—ฝ ๐ŸŒ @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 missedโ€”and where the proposal stands now ๐Ÿ‘‡ ๐Ÿ” ๐—ช๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ ๐—”๐—œ๐—ฃ-๐Ÿญ๐Ÿญ๐Ÿต? AIP-119 proposes reducing the APT staking reward rate from 6.8% to 3.8% over 3 months, reducing it by 1% each month. ๐Ÿ’ก ๐—ง๐—ต๐—ฒ ๐—ฅ๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น๐—ฒ ๐—•๐—ฒ๐—ต๐—ถ๐—ป๐—ฑ ๐—”๐—œ๐—ฃ-๐Ÿญ๐Ÿญ๐Ÿต The goals behind AIP-119 are to: โ€ข Redirect APT toward other priorities in the ecosystem โ€ข Encourage innovation in how APT is used and how yield is generated โ€ข Reduce APT inflation ๐Ÿ—ฃ ๐—–๐—ผ๐—บ๐—บ๐˜‚๐—ป๐—ถ๐˜๐˜† ๐—™๐—ฒ๐—ฒ๐—ฑ๐—ฏ๐—ฎ๐—ฐ๐—ธ & ๐—ž๐—ฒ๐˜† ๐—ค๐˜‚๐—ฒ๐˜€๐˜๐—ถ๐—ผ๐—ป๐˜€ Alternative approaches suggested by the community: โ€ข Slowing the reduction (e.g., cutting 0.5% every 2โ€“3 months) โ€ข 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: โ€ข Increasing delegation from the Foundation โ€ข Shortening lockup periods to encourage more community staking Q: Will stakers move to higher-yield platforms? A: Possiblyโ€”but it's worth noting: โ€ข Many higher-yield options already exist, yet over 75% of outstanding APT is currently being staked โ€ข A 3.8% staking reward aligns with other L1s like Ethereum โ€ข Many validators are long-term committed to securing Aptos ๐Ÿค ๐—›๐—ผ๐˜„ ๐—”๐—œ๐—ฃ-๐Ÿญ๐Ÿญ๐Ÿต ๐—”๐—น๐—ถ๐—ด๐—ป๐˜€ ๐˜„๐—ถ๐˜๐—ต ๐—•๐—ฟ๐—ผ๐—ฎ๐—ฑ๐—ฒ๐—ฟ ๐—˜๐—ฐ๐—ผ๐˜€๐˜†๐˜€๐˜๐—ฒ๐—บ ๐—š๐—ฟ๐—ผ๐˜„๐˜๐—ต AIP-119 complements other Aptos Foundation efforts, including: โ€ข 200M+ allocated to DeFi grants and investments in 2025 โ€ข The LFM program, supporting TGE-ready projects with marketing and strategy โ€ข 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: โ€ข The development of new and creative applications to seek out extra APT yield โ€ข APT-based incentive campaigns โ€ข Directing more activity towards "under-the-radar" yield sources around the ecosystem โฉ ๐—ช๐—ต๐—ฎ๐˜โ€™๐˜€ ๐—ก๐—ฒ๐˜…๐˜? The review session wrapped with these action items & next steps: โ€ข Continue collecting and addressing community feedback: https://github.com/aptos-foundation/AIPs/issues/587 โ€ข Refine the proposal to reflect that input โ€ข Submit the final proposal for on-chain community vote (est. May 20 โ€“ subject to change) Thanks for staying involved and helping shape the future of Aptosโ€”powered by the community, for the community ๐Ÿ’ช๐ŸŒ Stay tuned for AIP-119 updates, coming soon.
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