
Aptos|May 08, 2025 19:00
ððð¬ð ð: ððð£-ðððµ ððŒðºðºðð»ð¶ðð ð¥ð²ðð¶ð²ð ð¥ð²ð°ð®ðœ ð
@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 missedâand where the proposal stands now ð
ð ðªðµð®ð ð¶ð ððð£-ðððµ?
AIP-119 proposes reducing the APT staking reward rate from 6.8% to 3.8% over 3 months, reducing it by 1% each month.
ð¡ ð§ðµð² ð¥ð®ðð¶ðŒð»ð®ð¹ð² ðð²ðµð¶ð»ð± ððð£-ðððµ
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
ð£ ððŒðºðºðð»ð¶ðð ðð²ð²ð±ð¯ð®ð°ðž & ðð²ð ð€ðð²ððð¶ðŒð»ð
Alternative approaches suggested by the community:
⢠Slowing the reduction (e.g., cutting 0.5% every 2â3 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: Possiblyâbut 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
ð€ ððŒð ððð£-ðððµ ðð¹ð¶ðŽð»ð ðð¶ððµ ðð¿ðŒð®ð±ð²ð¿ ðð°ðŒððððð²ðº ðð¿ðŒðððµ
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
â© ðªðµð®ðâð ð¡ð²ð
ð?
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 â subject to change)
Thanks for staying involved and helping shape the future of Aptosâpowered by the community, for the community ðªð
Stay tuned for AIP-119 updates, coming soon.
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