TLDR
- The Aptos Foundation has proposed a hard cap of 2.1 billion APT tokens to limit total supply.
- Current circulation includes 1.196 billion APT tokens with 904 million remaining under the cap.
- The foundation plans to gradually reduce staking rewards from 5.19% to 2.6% over time.
- Network gas fees will increase by 10 times to boost deflationary pressure and burn more tokens.
- 210 million APT tokens, roughly 18% of the current supply, will be permanently locked and staked.
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The Aptos Foundation has unveiled a major proposal to reshape its tokenomics and governance structure. The new plan aims to replace its existing subsidy-based emission model with one focused on performance-driven mechanisms. Key elements of the proposal include a fixed token supply cap, reduced staking rewards, and an increased gas fee to promote deflationary conditions.
Aptos Foundation Proposes Fixed Token Supply Cap
The Aptos Foundation has proposed a hard cap of 2.1 billion APT tokens, marking the first formal ceiling on the total supply. Currently, there are 1.196 billion APT tokens in circulation, with 1 billion minted at mainnet launch and 196 million distributed as staking rewards. With a hard cap of 2.1 billion, approximately 904 million tokens remain to be issued, accounting for 43% of the total supply.
The foundation plans to release the remaining tokens gradually over time through staking rewards, with amounts decreasing as the network approaches the cap. This shift means that as the total supply nears the ceiling, validators will rely more on transaction fees than new token emissions for compensation. The reform package also addresses a major supply unlock milestone set for October 2026, when the four-year vesting cycle for early investors concludes.
Reduction in Staking Rewards and Gas Fees
The Aptos Foundation intends to lower the annual staking reward rate from 5.19% to 2.6%. The change comes with a revised staking framework that will provide higher yields for those who commit their tokens for longer durations. This adjustment aims to reduce overall emissions while rewarding longer-term stakers.
In an effort to accelerate deflationary pressure, the foundation also plans to increase network gas fees by 10 times. Since all gas fees are burned on the network, a higher fee will lead to more APT tokens being removed from circulation. This action, combined with growing on-chain activity, is expected to boost token burns and tighten the circulating supply significantly.
Foundation’s Approach to Token Utilization and Buybacks
In addition to staking adjustments and fee increases, the Aptos Foundation plans to lock 210 million APT tokens, approximately 18% of the current circulating supply. These tokens will remain staked permanently, and the foundation will fund its operations through staking rewards rather than selling treasury tokens into the market.
The foundation is also exploring a token buyback program or establishing an APT reserve funded by future revenues or existing cash holdings. This move is part of a broader strategy to control the token’s supply dynamics and further support the long-term sustainability of the Aptos network.
