The Aptos (APT) community is currently reviewing a new governance proposal, AIP-119, which proposes a gradual reduction of the network’s staking yield.
The proposal, submitted by community member Moon Shiesty, proposes reducing the annual staking yield by 1% every month for the next three months, eventually dropping it to around 3.79%.
According to details shared on the Aptos governance page, AIP-119 serves as the first step in a broader effort to restructure the Aptos economic model. The yield adjustment is scheduled to occur within three months, while the overall impact of the proposal will be evaluated over a six-month period to allow for community feedback and performance evaluation.
The proposal argues that the current ~7% staking yield is excessively high, limiting capital efficiency and pushing participants towards higher-risk strategies such as re-staking, DePIN infrastructure, MEV (Miners’ Extractable Value), and DeFi incentives. While a lower staking reward could reduce the appeal of holding APT, the proposal notes that this could 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 a community staking initiative to support validators with less than 3 million APT and encourages the community to develop more sustainable, long-term incentive mechanisms.
The proposal will undergo community and foundation review over the next four weeks, with a mainnet vote expected in the fifth week.
*This is not investment advice.
