Aptos token plummets after the launch amid blockchain’s contentious tokenomics
- Aptos’ APT token crashed by more than 40% in the last 24 hours.
- Out of 1 billion APT tokens of initial supply, 49% have been reserved for the core contributors, foundations and investors.
- As per Aptos, more than 82% of the tokens on the network have been staked across all categories.
In a Terra 2.0-esque launch, a new blockchain Aptos noted a terrible crash on Wednesday. The highly anticipated blockchain launched its mainnet on October 18. Aptos noted significant hype surrounding the chatter of the blockchain being a “Solana killer”, but the launch was a hype killer.
Aptos sinks after launch
The Aptos blockchain launched with a rather controversial tokenomics, which noted some backlash from the community. As a result, within 24 hours of the mainnet going live, the native token APT began crashing and ended with a 46% plunge. Trading at $7.4, APT fell from its high of $13.73, according to CoinGecko.
Along with the mainnet, the tokenomics of the blockchain were also published. According to it, at the time of launch, 51.02% of all APT tokens - which amount to more than 510.2 million APT - have been allocated towards the community. The remaining 48.98% of all 1 billion tokens are set to be distributed among the core contributors, foundation and investors.
Aptos stated that the 410 million APT held by the Aptos Foundation and 100 million APT held by Aptos Labs would be distributed over a 10-year period. This distribution will see 125 million APT dedicated to supporting ecosystem projects and other community growth initiatives.
The backlash
Since more than 489 million APT has been set aside for the core contributors and investors, this supply will be subjected to a four-year lock-up schedule. For the first 12 months, no APT will be available to these cohorts. The tokenomics read,
“3/48ths of such tokens unlock on the 13th month after mainnet launch and each month thereafter up to and including the 18th month.”
Furthermore, staked APT will follow a 7% maximum reward rate and will be evaluated at every epoch. At the moment, about 82% of all tokens have been staked across all categories.
APT distribution
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
