Aptos Community Proposal Seeks to Slash Staking Rewards by Nearly 50%

A new community-driven proposal is stirring debate within the Aptos blockchain ecosystem. On April 18, a contributor known as MoonSheisty submitted a proposal to significantly reduce staking rewards for Aptos' native token (APT), aiming to cut the current 7% annual yield nearly in half to 3.79% over a three-month period.

The proposal is intended to align Aptos with other layer-1 networks and encourage more efficient use of capital across its decentralized ecosystem. According to MoonSheisty, high staking rewards—while attractive for passive income—can deter users from participating in higher-risk, higher-reward opportunities such as restaking, MEV (maximal extractable value), DePIN (decentralized physical infrastructure networks), and DeFi platforms.

However, the idea has been met with mixed reactions. While some community members on X (formerly Twitter) are curious about the potential shift, others on GitHub have raised concerns. One such member, ElagabalxNode, warned that slashing staking rewards without introducing complementary support systems—like a robust delegation or grant program—could disadvantage smaller validators. This could lead to validator centralization, undermining Aptos' decentralization and long-term security.

Aptos TVL and other metrics. Source: DefiLlama

The proposal suggests that the Aptos community should explore launching a validator support initiative to provide grants or stake delegation to small operators contributing to the ecosystem. This would ensure they remain viable in the face of reduced reward incentives.

Aptos, launched in 2021 by a group of former Meta engineers, currently holds a total value locked (TVL) of approximately $974 million, with $320 million coming from its leading lending protocol, Aries Markets, according to DefiLlama.

Staking remains a critical component in securing blockchains and rewarding participants, but the real yield from staking can vary widely. Data from CoinLedger shows the BNB Smart Chain offers some of the highest real staking returns at 7.43%, while Cardano lags behind at just 0.55%.

Network participants have seen similar reform attempts in the past. For instance, Polkadot proposed reducing its unbonding period to just two days in June 2024. Starknet voted in a new staking mechanism in September, and Ethereum’s Vitalik Buterin has frequently addressed the challenges of staking across decentralized ecosystems.

Ultimately, while staking serves as a fundamental pillar for community involvement and network security, proposals like this one spotlight the delicate balance between capital efficiency, validator inclusivity, and long-term decentralization. The Aptos community now faces a key decision: prioritize leaner tokenomics or protect the validator diversity that underpins the network’s resilience.