Anticipated Proposal for the Big Altcoin Arrives: If Passed, It Could Seriously Reduce Token Inflation

The Aptos (APT) community is currently reviewing a new governance proposal, AIP-119, which proposes a gradual reduction of the network’s staking yield. The proposal, submitted by community member Moon Shiesty, proposes reducing the annual staking yield by 1% every month for the next three months, eventually dropping it to around 3.79%. According to details shared on the Aptos governance page, AIP-119 serves as the first step in a broader effort to restructure the Aptos economic model. The yield adjustment is scheduled to occur within three months, while the overall impact of the proposal will be evaluated over a six-month period to allow for community feedback and performance evaluation. The proposal argues that the current ~7% staking yield is excessively high, limiting capital efficiency and pushing participants towards higher-risk strategies such as re-staking, DePIN infrastructure, MEV (Miners’ Extractable Value), and DeFi incentives. While a lower staking reward could reduce the appeal of holding APT, the proposal notes that this could be offset by reducing inflation and developing alternative reward systems. Related News: HOT MOMENTS: Some Altcoins Listed on Major Exchanges Are Experiencing Sudden Declines – Here’s the Latest Information One concern addressed in the proposal is the potential impact on small validators. AIP-119 proposes the creation of a community staking initiative to support validators with less than 3 million APT and encourages the community to develop more sustainable, long-term incentive mechanisms. The proposal will undergo community and foundation review over the next four weeks, with a mainnet vote expected in the fifth week. *This is not investment advice. Continue Reading: Anticipated Proposal for the Big Altcoin Arrives: If Passed, It Could Seriously Reduce Token Inflation

Source: BitcoinSistemi