According to the Aptos governance proposal page, community member moon shiesty submitted AIP-119, suggesting a monthly reduction of 1% in staking annual yield over the next three months, ultimately reaching approximately 3.79%. The proposal aims to be an initial attempt at restructuring the Aptos economic model, planned to be gradually implemented over six months to assess its potential impact.
The proposal argues that the current ~7% staking rewards are too high, reducing capital efficiency and encouraging the community to explore riskier or more costly opportunities such as restaking, DePIN infrastructure, MEV, and DeFi rewards. Although reducing staking rewards might decrease the incentive to hold APT, the proposal believes that reduced inflation and new reward mechanisms could offset the impact.
The proposal notes that this could impact small validators and suggests considering supporting validators with less than 3 million APT through a community staking program, and initiating discussions on more efficient long-term incentive methods. The proposal is expected to be reviewed by the community and foundation over the next four weeks, with submission to mainnet voting in the fifth week.
