The APTOS (APT) community is currently reviewing AIP-119, a new governance proposal. This proposes gradually reduce the network’s staking yield.
The proposal submitted by community member Moon Shiesty proposes a 1% decrease per month for the next three months, ultimately reducing it to around 3.79%.
According to details shared on the APTOS governance page, AIP-119 will serve as the first step in a broader effort to reconstruct APTOS’s economic model. The yield adjustments are expected to occur within three months, but the overall impact of the proposal will be assessed over six months, allowing community feedback and performance assessments.
The proposal argues that the current ∼7% staking yield is excessively high, limiting capital efficiency and pushing participants to higher risk strategies such as restake, depine infrastructure, MEV (extractable value of miners), and defi incentives. Lower staking rewards may reduce the appeal of retaining APT, but the proposal points out that this can be offset by reducing inflation and developing alternative reward systems.
One concern addressed in the proposal is the potential impact on small validators. AIP-119 proposes the creation of community staking initiatives to support validators with less than 3 million APTs, encouraging communities to develop more sustainable and long-term incentive mechanisms.
The proposal will be reviewed by the community and foundation over the next four weeks, with a mainnet vote expected in the fifth week.
*This is not investment advice.
