Aptos Proposes Lower Rewards and Higher Fees to Boost Token Scarcity

The Aptos Foundation has disclosed new plans to make the Aptos network more sustainable and strengthen the long-term value of its native token, APT.

According to a recent announcement, the proposed changes will focus on three major areas: reducing staking rewards, increasing transaction fees, and boosting token burn through on-chain trading.

Aptos Foundation Signals Balanced Reward Strategy

Interestingly, Aptos Foundation noted the importance of balancing attractive rewards for validators with cautious control of token supply. Following the latest development, the APT token did not increase. The asset trades at $0.8778, down 4.3% in the last 24 hours.

To achieve this, it plans on submitting a governance proposal. This move aims to reduce the annual staking rewards rate from 5.19% to 2.6%.

Importantly, the foundation emphasized that it is studying a new staking model. This emerging innovation offers higher rewards to participants who choose to lock up their tokens for longer periods. However, those who prefer shorter commitments would receive low rates.

Overall, the total amount of rewards distributed would remain within the reduced-emission level, according to the update. Concurrently, technical upgrades functioning under AIP-139 aim to reduce validator operating costs.

Together, these changes are tailored to encourage stable, long-term participation that helps secure the network while preventing excessive token inflation.

Higher Gas Fees Incoming

Notably, Aptos is known as one of the lowest-cost blockchains in the crypto industry. Due to extremely low fees, the foundation plans to propose a 10-fold increase in gas fees via governance. Furthermore, all transaction fees paid in APT are permanently burned.

Regardless of this increase, stablecoin transfers on Aptos would cost roughly $0.00014, remaining among the cheapest globally.

According to the foundation, slightly higher fees in combined with growing network activity will significantly increase the amount of APT burned and removed from circulation. Over time, this could support the token’s value.

Another key factor in reducing supply is the rise of fully on-chain trading activity. Decibel, a decentralized exchange (DEX) built on Aptos and incubated by Aptos Labs with the Decibel Foundation.

In addition, these foundations execute every trading action directly on the blockchain. Each order placement, match, or cancellation consumes gas fees that are burned.

With 100% on-chain execution, the upcoming Decibel mainnet launch is expected to sharply increase transaction volume on Aptos. Higher throughput means more APT is used as fees and permanently removed from supply.

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