
Aptos|May 08, 2025 19:00
๐๐๐ฌ๐ ๐: ๐๐๐ฃ-๐ญ๐ญ๐ต ๐๐ผ๐บ๐บ๐๐ป๐ถ๐๐ ๐ฅ๐ฒ๐๐ถ๐ฒ๐ ๐ฅ๐ฒ๐ฐ๐ฎ๐ฝ ๐
@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 missedโand where the proposal stands now ๐
๐ ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐๐ฃ-๐ญ๐ญ๐ต?
AIP-119 proposes reducing the APT staking reward rate from 6.8% to 3.8% over 3 months, reducing it by 1% each month.
๐ก ๐ง๐ต๐ฒ ๐ฅ๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น๐ฒ ๐๐ฒ๐ต๐ถ๐ป๐ฑ ๐๐๐ฃ-๐ญ๐ญ๐ต
The goals behind AIP-119 are to:
โข Redirect APT toward other priorities in the ecosystem
โข Encourage innovation in how APT is used and how yield is generated
โข Reduce APT inflation
๐ฃ ๐๐ผ๐บ๐บ๐๐ป๐ถ๐๐ ๐๐ฒ๐ฒ๐ฑ๐ฏ๐ฎ๐ฐ๐ธ & ๐๐ฒ๐ ๐ค๐๐ฒ๐๐๐ถ๐ผ๐ป๐
Alternative approaches suggested by the community:
โข Slowing the reduction (e.g., cutting 0.5% every 2โ3 months)
โข 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:
โข Increasing delegation from the Foundation
โข Shortening lockup periods to encourage more community staking
Q: Will stakers move to higher-yield platforms?
A: Possiblyโbut it's worth noting:
โข Many higher-yield options already exist, yet over 75% of outstanding APT is currently being staked
โข A 3.8% staking reward aligns with other L1s like Ethereum
โข Many validators are long-term committed to securing Aptos
๐ค ๐๐ผ๐ ๐๐๐ฃ-๐ญ๐ญ๐ต ๐๐น๐ถ๐ด๐ป๐ ๐๐ถ๐๐ต ๐๐ฟ๐ผ๐ฎ๐ฑ๐ฒ๐ฟ ๐๐ฐ๐ผ๐๐๐๐๐ฒ๐บ ๐๐ฟ๐ผ๐๐๐ต
AIP-119 complements other Aptos Foundation efforts, including:
โข 200M+ allocated to DeFi grants and investments in 2025
โข The LFM program, supporting TGE-ready projects with marketing and strategy
โข 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:
โข The development of new and creative applications to seek out extra APT yield
โข APT-based incentive campaigns
โข Directing more activity towards "under-the-radar" yield sources around the ecosystem
โฉ ๐ช๐ต๐ฎ๐โ๐ ๐ก๐ฒ๐
๐?
The review session wrapped with these action items & next steps:
โข Continue collecting and addressing community feedback: https://github.com/aptos-foundation/AIPs/issues/587
โข Refine the proposal to reflect that input
โข 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 Aptosโpowered by the community, for the community ๐ช๐
Stay tuned for AIP-119 updates, coming soon.
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