- Aptos plans to cut staking rewards from 7% to 3.79% to push users toward active network roles.
- Small validators may face challenges but a support program in the proposal aims to keep them in the network.
- The community has four weeks to share feedback before the proposal moves closer to mainnet implementation.
A new proposal submitted on April 18 aims to reduce staking yields across the Aptos blockchain. The plan suggests a decrease from 7% to 3.79% over three months. It comes under the title AIP-119 and was submitted by community member MoonSheisty. Sherry Xiao, Aptos Labs’ head of production engineering, co-authored the proposal.
Lower Yield to Encourage Broader Engagement
The proposed change targets a realignment of user incentives. Authors believe high rewards limit participation in more complex network roles. They argue that users ignore advanced opportunities like restaking, MEV strategies, and DePIN infrastructure. These areas, they state, could support more sustainable growth.
The current 7% yield offered by Aptos stands above Ethereum’s 3.1%. Yet, it still trails behind Cosmos’ 15% and Avalanche’s 7.6%. The variation highlights a lack of standardization in staking rewards across major Layer 1 blockchains. The proposal hopes to make Aptos more competitive and efficient.
Validators Raise Concerns About Sustainability
Community feedback quickly followed the proposal’s release. Some validators voiced concern over the reduction’s effect on smaller operators. They argued that reduced rewards could force them out of the network. Many small validators depend on staking returns to keep their nodes running. A loss of income could impact network decentralization.
To address these concerns, the proposal includes a validator support initiative. It suggests allocating grants and stakes to support smaller validators. This would ensure their continued participation in the ecosystem despite the lower yield. The goal is to keep the network diverse and operationally healthy.
Suggested Reallocation of Stakes
Xiao also recommended reviewing the current stake delegation process. She proposed shifting stake toward active validators. That shift, according to the proposal, would better match incentives with long-term network health. The redistribution would reward operators who actively contribute to Aptos development.
Some validators encouraged adopting a Solana-like model. Solana uses a system that supports smaller, reliable validators by matching stakes. That system allows operators to remain viable even with limited delegator support. Others suggested exploring additional income options like RPC services and indexing.
Feedback Window Now Open
The Aptos community now has a four-week window to provide feedback on AIP-119. The final proposal could reach the mainnet following this period. The initiative reflects broader concerns seen in similar blockchain ecosystems. Solana faced a comparable challenge with its SIMD-228 proposal in March.
Both Aptos and Solana are navigating validator sustainability and decentralized participation. AIP-119 signals a strategic move toward long-term value creation across the Aptos ecosystem.
