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- Aptos updates tokenomics with a hard cap, higher burns, and rewards linked to network activity.
- The new model targets reduced emissions as fees, staking cuts, and on-chain volume lift burn rate.
- Institutional growth and real-world pilots strengthen Aptos’ shift toward sustainable supply.
Aptos Foundation has revealed plans for a major redesign of its tokenomics system. The new system will include a rigid supply cap, increased fee burn, and performance-based rewards. According to the foundation, this will significantly change the tokenomics system, which will no longer reflect its initial high inflation design.
The new tokenomics system will be revealed on X. According to the foundation, the new system will potentially make the supply of APT deflationary if the network experiences increased usage. The tokens burned will potentially surpass new token emissions.
Aptos has experienced significant growth in its technical performance. For instance, the network has a block time of less than 50 milliseconds.
Additionally, the network has experienced 99.99% uptime and no major security breaches in its history. Almost 9,700 open-source projects are currently being worked on by 500 active developers.
Institutional Capital Flows Strengthen Aptos Ecosystem Growth
The ecosystem has continued to experience growth, with over 200 active applications in the ecosystem. These include decentralized finance, payment, and infrastructure projects, which generate $33.5 million in revenue. According to the foundation, this is a 1,552% increase in revenue compared to previous periods.
Institutional participation is also on the rise. BlackRock, Franklin Templeton, and Apollo have invested hundreds of millions in Aptos-based initiatives, according to the foundation.
Another important aspect being addressed in this redesign is staking rewards. The foundation aims to decrease these from 5.19% to 2.6%. This will result in a reduction in emissions but will ensure incentives remain in place for long-term validators.
The validator mechanism will also be adjusted. This change is expected to result in a reduction in operational costs for validators, as indicated in AIP-139. The foundation stated this change will ensure network security as emissions are reduced.
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The fees for transactions on the network will also be increased. The foundation aims to implement a tenfold increase in fees. It is worth noting that all fees paid in APT are burned. This means a reduction in the number of tokens in circulation. The fees for transferring stablecoins will be around $0.00014.
Burn Rate Acceleration and New Supply Controls
The burn rate might be accelerated by an increase in trading activities on Decibel. This exchange operates fully on-chain. The foundation believes this might result in a burn rate of over 32 million APT annually.
Aptos will implement a strict cap on total supply, valued at 2.1 billion. The current number of tokens in circulation is around 1.196 billion APT. The rest will be released gradually in the form of rewards.
The foundation will lock 210 million APT. This will be equivalent to 18% of the total supply. This will be used to stabilize governance and ensure network security through staking.
Rewards based on performance are also planned. The tokens will be issued after meeting specific milestones. The foundation is also reviewing a buyback program to reduce the total supply.
Aptos Labs continues to develop use cases in the real world. The firm recently partnered with Hong Kong’s Project e-HKD+ to develop tokenized settlements for funds. The project also involves HKMA, Hang Seng Bank, and BCG.
The firm also integrated the USD1 stablecoin last year. Users can access the stablecoin via OKX, Gate, Backpack, and Petra Wallet. The addition expands payments and settlement options for retail and institutional users.
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