Aptos Proposes Major Tokenomics Overhaul With Hard Cap and Lower Staking Rewards

Aptos is moving away from subsidy-driven emissions toward a performance-based, supply-constrained model designed to tie token issuance directly to network usage.

The Aptos Foundation has outlined a comprehensive tokenomics update that includes cutting staking rewards nearly in half, introducing a hard supply cap of 2.1 billion APT, increasing gas fees by 10x (with all fees burned), permanently locking 210 million APT, and transitioning future grants to KPI-based distributions. A programmatic buyback mechanism is also under exploration.

From Bootstrap Inflation to Performance-Driven Supply

APT currently has 1.196 billion tokens in circulation. At mainnet launch, 1 billion APT were minted, and roughly 196 million have since been distributed as staking rewards.

Under the new framework, Aptos would formally cap total supply at 2.1 billion APT at the protocol level. Once approved through governance, no additional tokens could ever be minted beyond that ceiling. This leaves 904 million APT available under the cap, primarily to fund validator rewards over time.

However, the long-term expectation is that burns could outpace emissions before the cap is ever reached. In that scenario, the cap acts more as a supply safety mechanism than a likely endpoint.

The proposal also reflects a natural inflection point in supply dynamics. The four-year unlock cycle for early investors and core contributors concludes in October 2026, reducing annual unlock pressure by roughly 60%. Foundation grant distributions are also projected to decline by more than 50% year-over-year from 2026 to 2027.

Staking Rewards Cut From 5.19% to 2.6%

Aptos Foundation intends to initiate governance to reduce annual staking rewards from 5.19% to 2.6%. The goal is to balance validator incentives with long-term supply discipline.

In parallel, the Foundation is exploring a staking structure that would reward longer lock-up commitments with relatively higher yields, while maintaining lower overall emissions. Combined with new validator architecture upgrades under AIP-139, which aim to reduce operational costs, this shift is designed to encourage long-term participation without excessive token inflation.

10x Gas Fee Increase and Burn Acceleration

Currently, Aptos is one of the lowest-cost blockchains in operation. All gas fees are paid in APT and permanently burned.

The Foundation plans to propose a 10x increase in gas fees through governance. Even after the increase, stablecoin transfers would still cost approximately $0.00014, remaining among the lowest globally.

The purpose of the increase is not to raise user costs meaningfully, but to amplify token burns as network throughput scales. Higher activity combined with higher per-transaction burn rates would materially increase APT removed from circulation.

Decibel DEX and High-Throughput Burn Dynamics

A key pillar of the new token model is Decibel, a fully onchain decentralized exchange launching on Aptos. Every order, match, and cancellation executes directly onchain, dramatically increasing transaction throughput.

At scale, Decibel is projected to burn over 32 million APT per year once it reaches 100+ markets. As throughput approaches 10,000 transactions per second and beyond, annual burn levels could expand proportionally.

Because all gas is burned, high-frequency trading activity directly reduces supply. The more markets and products Decibel supports, the greater the structural burn pressure on APT.

Permanent Lock of 210 Million APT

Aptos Foundation also announced that 210 million APT will be permanently locked and continuously staked.

These tokens will never be sold or distributed. They represent nearly 18% of the current circulating supply and approximately 37% of the Foundation’s original mainnet allocation.

Functionally, this move removes 210 million APT from potential market supply, while aligning Foundation incentives with long-term network performance through staking rewards rather than treasury sales.

Performance-Gated Grants and Potential Buybacks

Future grants will transition to KPI-linked distributions. Instead of unconditional emissions, token rewards will vest only after performance milestones are met. If KPIs are missed, grants are deferred rather than canceled.

This ties token issuance directly to measurable ecosystem growth, particularly around Aptos’ positioning as a high-throughput “global trading engine.”

Additionally, the Foundation is exploring a programmatic buyback mechanism funded through treasury cash or revenue streams, including licensing and ecosystem investments. While details remain forthcoming, the objective would be to create opportunistic market-side demand for APT.

Toward a Deflationary Framework

Taken together, the proposed changes create a coordinated shift:

• Emissions decline through staking cuts and natural unlock reduction
• Burns increase through higher gas fees and onchain trading activity
• Supply certainty improves through a 2.1 billion hard cap
• Treasury risk decreases via permanent token lock
• Issuance becomes performance-driven rather than subsidy-based

If transaction activity scales as projected and Decibel drives sustained throughput, the framework establishes the structural conditions for burn-driven supply contraction over time.

The proposal now moves toward governance review, marking a significant evolution in Aptos’ economic model from growth-stage infrastructure to utilization-linked monetary design.

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