TechFlow News: On February 19, Aptos announced an update to the APT tokenomics model, shifting toward a performance-driven token supply mechanism that ties APT issuance to actual network utilization. This update includes the following seven key components:
Significant reduction in staking rewards: The annualized reward rate will decrease from the current ~5.19% to 2.6%, and new frameworks to incentivize long-term stakers will be explored.
Gas fees increased tenfold: Fees remain extremely low (e.g., stablecoin transfers cost approximately $0.00014), aiming to reduce inefficient usage and support deflation.
Introduction of a novel deflationary mechanism: High-frequency trading on on-chain DEXs (e.g., Decibel) will trigger large-scale APT burns.
Hard supply cap: A fixed maximum supply of 2.1 billion APT tokens, with no further issuance beyond this cap (current circulating supply: ~1.196 billion; remaining supply: ~904 million, representing ~43%).
Foundation’s permanent lockup: 210 million APT tokens permanently staked and locked—never to be sold or distributed.
Grant and reward program tied to performance: Future foundation grants and rewards will only be disbursed upon achieving key milestones toward becoming a “Global Transaction Engine.”
Initiation of programmable buybacks: The foundation commits to exploring a market-buyback program for APT, purchasing tokens opportunistically and potentially burning or reserving them.
Aptos Updates Token Economics Model: 2.1 Billion-Token Supply Cap, Foundation Permanently Locks 210 Million APT
Aptos announced an update to the APT tokenomics, shifting to a performance-driven token supply mechanism that ties APT issuance to actual network usage. This update comprises the following seven key elements:
1. Significant reduction in staking rewards: The annualized reward rate will decrease from the current ~5.19% to 2.6%, while exploring new frameworks to incentivize long-term stakers.
2. Gas fees increased tenfold: Fees remain extremely low (e.g., stablecoin transfers cost ~$0.00014), aiming to discourage inefficient usage and support deflation.
3. Introduction of a novel deflationary mechanism: High-frequency trading on on-chain DEXs (e.g., Decibel) will drive large-scale APT burns.
4. Hard supply cap: A fixed maximum supply of 2.1 billion APT tokens, with no further minting beyond this cap (current circulating supply: ~1.196 billion; remaining supply: ~904 million, ~43% of total).
5. Permanent foundation lockup: 210 million APT tokens permanently staked and locked by the foundation—never to be sold or distributed.
6. Performance-based grants and rewards: Future foundation grants and rewards will be disbursed only upon achieving key milestones toward becoming a “global transaction engine.”
7. Initiation of programmable buybacks: The foundation commits to exploring a market buyback program for APT, purchasing tokens opportunistically and potentially burning or reserving them.