Image default
Ethereum

Aptos Unveils Deflation Plan With Gas Burns and 210M APT Lock


  • Aptos plans to burn all gas fees, raising them 10x to reduce circulating APT supply.
  • Staking rewards will drop from 5.19% to 2.6%, incentivizing long-term validator participation.
  • Aptos Foundation will permanently lock 210 million APT, supporting network security and deflation.

Aptos has announced a major shift in its tokenomics framework. The update outlines steps to tie supply changes to network performance

The proposal includes higher gas fees that burn tokens and a permanent lock of foundation-held assets. The network also plans to cut staking rewards through governance. These measures aim to link token issuance with real transaction activity.

The update was shared publicly by Aptos Foundation on social media. It described the move as a transition from subsidy-driven emissions to performance-based supply rules.

Gas Fee Burn and Network Activity

Aptos plans to raise gas fees by ten times through a governance proposal. All gas fees are paid in APT and burned permanently. As a result, every transaction removes tokens from circulation.

However, fees will remain among the lowest in the market. Stablecoin transfers would still cost about $0.00014. Therefore, the network expects to keep its position in high-volume payments and trading.

In addition, higher onchain activity will increase total burned supply. This change links transaction growth directly to token reduction. Consequently, usage becomes a key driver of supply pressure.

The update also highlighted the role of Decibel, a fully onchain decentralized exchange. Decibel executes every order and cancel action onchain. This design increases transaction throughput and gas consumption.

As Decibel expands, projected burns could exceed 32 million APT each year. Over time, higher throughput could amplify this effect. Hence, trading activity becomes a deflation mechanism.

Staking Rewards and Long-Term Incentives

The foundation intends to reduce staking rewards from 5.19% to 2.6%. This change will be introduced through governance. It builds on earlier reductions proposed under AIP-119.

In addition, the network plans to explore longer-term staking commitments. Validators who lock tokens for longer periods could earn higher relative rewards. Short-term stakers would receive lower incentives.

At the same time, total rewards would stay within the reduced emission level. New validator architecture under AIP-139 aims to cut operating costs. These steps support stable participation while limiting supply growth.

Moreover, unlock schedules are already declining. Investor and contributor unlocks end in October 2026. Annual supply releases will fall by about 60% afterward.

Hard Supply Cap and Permanent Lock

Aptos will propose a protocol-level hard cap of 2.1 billion APT. Once approved, no new tokens can be minted beyond this limit. The cap introduces a fixed ceiling for long-term supply.

Currently, about 1.196 billion APT are in circulation. This leaves roughly 904 million tokens before the cap is reached. These tokens may fund future staking rewards at decreasing rates.

In addition, the foundation will permanently lock 210 million APT. These tokens will remain staked and will never be sold or distributed. This amount equals nearly 18% of current circulating supply.

The foundation will use staking rewards from these locked tokens to support operations. Therefore, it reduces reliance on treasury sales. This approach aligns foundation incentives with network security.

Performance-Based Grants and Buyback Plan

Future grants will shift to performance-triggered distributions. Tokens will vest only after projects meet defined milestones. If targets are missed, distributions will be delayed instead of canceled.

This model ties token issuance to measurable network success. Builders must demonstrate usage and results before receiving rewards. As a result, emissions depend on delivery.

The foundation also plans to explore a programmatic buyback system. It may use cash reserves or future revenue to purchase APT in the open market. Funding could come from licensing and ecosystem investments.

Together, these mechanisms aim to balance declining emissions with rising burns. The foundation expects a point where burned APT exceeds newly issued APT. At that stage, supply could turn deflationary.

The update signals a structural change for Aptos. It connects token supply with real network activity. According to the foundation, the network is moving into a phase focused on high-throughput financial applications and performance-driven economics.





Source link

Related posts

Market Watchers Predict $IPO Presale Could Hit $100M AUM by 2026

Tokenaltcoin

What Time Does ‘Gen V’ Season 2 Finale Begin Streaming? How To Watch

Tokenaltcoin

Japan’s First Yen-Pegged Stablecoin JPYC Launches Amid Financial Evolution

Tokenaltcoin