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Aptos reveals shift to deflationary supply in tokenomics update

  • Aptos announced that its network is transitioning to a performance-driven tokenomics model.
  • The update replaces Aptos' bootstrap-era subsidy model with a mechanism that focuses on network usage.
  • The Aptos Foundation intends to release a proposal to reduce staking APY from 5.19% to 2.60%.

Aptos (APT) is set to shift its tokenomics model from a bootstrap-era subsidy model to a performance-driven tokenomics that prioritizes network usage via a deflationary supply model.

Aptos unveils new tokenomics model in push toward performance-driven financial market

Layer-1 blockchain Aptos unveiled a change to its tokenomics, aiming to shift the network from an inflation-heavy bootstrap model to a performance-driven framework, according to a Thursday X post.

The proposal aims to introduce structural changes designed to reduce token issuance, strengthen deflationary mechanisms, and align supply with actual network usage. The move comes as Aptos approaches the conclusion of its four-year unlock cycle for early investors and core contributors in October.

As a result, annual supply unlocks are projected to decline by roughly 60%. Foundation grant distributions are also expected to fall more than 50% YoY between 2026 and 2027.

One of the central changes involves reducing staking rewards from an annualized yield of 5.19% to 2.60%. The adjustment is intended to curb inflation while maintaining network security through validator participation.

Aptos also plans to increase base gas fees tenfold. Despite the increase, transaction costs are expected to remain low, currently around $0.00014 per transaction. Notably, 100% of base gas fees will be directed toward on-chain token burns.

The burn mechanism is expected to accelerate as transaction throughput increases, particularly as ecosystem applications scale. The network referenced the expected launch of Decibel, a high-throughput decentralized exchange, as a potential driver of increased on-chain activity.

Additionally, the Aptos Foundation plans to permanently lock and stake 210 million APT, roughly 18% of the current circulating supply. While the tokens would continue supporting network security through staking, they would be removed from active market circulation.

The foundation further signaled a move toward future ecosystem grants and token distributions, tied to key performance indicators such as user growth and transaction volume. It will also explore protocol buybacks, which could involve using a portion of treasury funds to purchase and burn APT.

APT is down nearly 2% over the past 24 hours following the announcement, extending weekly losses to nearly 10% amid subdued crypto prices.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi

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