The Expected Offer Has Arrived in the Major Altcoin: If Accepted, It Could Significantly Reduce Token Inflation!

The Aptos (APT) community is currently reviewing a new governance proposal, AIP-119, which suggests a gradual reduction in the network's staking rewards.

The proposal presented by community member Moon Shiesty suggests reducing the annual staking yield by 1% each month over the next three months, ultimately decreasing it to approximately 3.79%.

According to the details shared on the Aptos governance page, AIP-119 serves as the first step in a broader effort to restructure the Aptos economic model. While the yield adjustment is planned to be made within three months, the overall impact of the proposal will be evaluated within a six-month period to allow for community feedback and performance assessment.

The proposal argues that the current ~%7 staking yield is excessively high, limits capital efficiency, and pushes participants into higher-risk strategies such as re-staking, DePIN infrastructure, MEV (Miner Extractable Value), and DeFi incentives. While a lower staking reward may reduce the appeal of holding APT, the proposal states that this can be balanced by reducing inflation and developing alternative reward systems.

One concern addressed in the proposal is the potential impact on small validators. AIP-119 suggests the creation of a community staking initiative to support validators with less than 3 million APT, encouraging the community to develop more sustainable, long-term incentive mechanisms.

The proposal will undergo community and foundation review for the next four weeks, and a mainnet vote is expected to take place in the fifth week.