The Aptos Foundation proposes a new disruptive tokenomics
The Aptos Foundation is proposing a significant shake-up in Aptos token volatility by announcing various potential policy changes intended to encourage greater APT deprecation.
The Aptos Foundation said in an X post on Wednesday that it would offer a number of governance proposals to help shift the ecosystem away from the current subsidy-based emission model to “performance-based methods” and focus on reducing APT supply.
“The Aptos Network is transitioning to performance-driven Tokenomics, designed to align delivery mechanics with network usage,” added the Aptos Foundation.
“This update replaces Bootstrap-era support with transaction-based mechanisms, creating a framework that allows applications to scale at a much larger scale.”
One of the foundation's proposals is to pool 2.1 billion tokens, as APT currently does not have a large amount in its total supply. The group currently has 1.196 billion APT in circulation.
Under the current emission structure, new tokens are continuously created to support the ecosystem through funding such as development, grants and rewards.
Meanwhile, significant token openings loom over the ecosystem.
However, the Aptos Foundation said this pressure has eased and will continue to decline after the next major four-year token launch cycle ends in October, resulting in a 60% drop in annual supply launches.
As the ecosystem matures to the point where large institutions like BlackRock, Franklin Templeton and Apollo are now deploying “hundreds of millions of onchains,” APT Tokenomics should become more sustainable, the team said.
“Without reform, emissions will continue indefinitely without a hard ceiling, performance requirements, and no connection between supply and network activity,” the group said.
Key ideas and policy changes followed.
Alongside the tougher 2.1 billion supply cap, the proposed policy changes include reducing the annual award rate from 5.19% to 2.6% and increasing awards for “long-term commitment”.
The Aptos Foundation says this will reduce overall emissions and reward long-term participants.
Elsewhere, the group is pushing for a 10-fold increase in gas charges, saying there is room to do so, citing how cheap it is to use the network. This also helps reduce emissions as gas bills are burned in APT.
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“Even with a 10X increase, Statcoin transactions will still be the lowest in the world at around $0.00014, making it the best blockchain for stablecoins, payments and other similar high-volume transactions,” the group said.
The Aptos Foundation proposes to permanently lock 210 million APT tokens to the network. The group said this would be “practically equivalent to a token burn” and that the reward would be used to fund foundation operations.
The group said it will change its grant policy and set strict KPIs to ensure superior performance before issuing tokens. Finally, the foundation will explore a token return program, or APT reserve, to help balance supply.
The Aptos Foundation is not alone in seeking major changes to native token flexibility. In January, Optimum's management community approved a ground-up proposal to use 50% of Superchain's revenue to launch a rebate program.
Meanwhile, decentralized exchange Uniswap saw a significant token approved in December, and the Pancake Swap community also approved a proposal to reduce supply last month.
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