Aptos Proposes 2.1B APT Supply Cap and Lower Staking Rewards in Major Tokenomics Overhaul

• Aptos plans to set a maximum supply of 2.1 billion APT and reduce staking rewards to control inflation.
•  Higher gas fees and token burns could lower the circulating supply and support long-term token value.

The Aptos Foundation has introduced a major proposal to change its native token APT’s work structure. This aims to reduce inflation and to control the token supply. Aptos says that the change would replace its early “Bootstrap system” with a structure that mainly focuses on the usage, transaction fees, and controlled supply. 

Hard Cap of 2.1 Billion APT Tokens

One of the biggest proposal changes is setting the maximum supply limit of 2.1 billion APT. Currently, around 1.196 billion APT are in circulation, and 1 billion APT were created at the launch, with 196 billion APT having been issued as staking rewards. If the hard cap is approved, only 904 million APT would remain available for future distribution. The new token issuance will be stopped once the supply limit is reached. After that, network validators would earn rewards mainly from the transaction fees. 

The foundation also plans to reduce the staking rewards. Currently, the annual staking reward is 5.19%. The proposed new rate is now 2.6%. The new model would also reward users who are staking their tokens for a long period. 

The Foundation’s other key proposal is to increase the network fees by 10 times. Even after the increase, the cost of stablecoin transfer would still be extremely low, about $0.00014 per transaction. Most importantly, Aptos burns the gas fees, and this means that the tokens used to pay fees are permanently removed from circulation. 

Permanent Staking

The Foundation plans for permanent staking of 210 million APT and uses these staking rewards to fund operations instead of selling. They consider building an APT reserve fund and exploring a future APT buyback program. They aim to reduce selling pressure and to strengthen the long-term supply management. 

Aptos is now joining the list of major tokens like Aave, Injective, and Uniswap that are changing their token models. Many blockchain projects are now focusing on reducing inflation and improving token sustainability. If this proposal is approved, it could increase the token scarcity and shift revenue from the token printing to the real network usage, reducing inflation. 

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