Aptos updates tokenomics model: supply capped at 2.1 billion tokens, Gas fees increased tenfold, launch of buyback program

Odaily Planet Daily reports that Aptos has announced an update to the APT token economic model, shifting to a performance-driven token supply mechanism that links APT supply to actual network usage. Specifically, this update includes the following seven points:

1. Reduce staking reward rates and incentivize long-term stakers. The Aptos Foundation has proposed lowering the annualized staking reward rate from 5.19% to 2.6%. Additionally, the Foundation is exploring a governance proposal to change the staking framework to better align incentives with long-term network participation.

2. Increase gas fees by ten times. Currently, Aptos is one of the lowest-cost blockchains. Given the extremely low transaction fees, the Aptos Foundation will propose a governance change to raise gas fees to ten times the current amount. Even after the increase, transfer fees for stablecoins on the network will remain as low as approximately $0.00014.

3. Transaction utilization and fees. A new deflationary mechanism will be introduced through Decibel, a decentralized exchange protocol on Aptos. High-frequency trading activities will significantly consume and burn APT.

Currently, all forms of payments on the network for APT transactions or “gas fees” will be permanently burned. Decibel, incubated through a partnership between Aptos Labs and the Decibel Foundation, represents one of the first fully decentralized exchanges where all trading activities are executed on-chain: every order, match, and cancellation is on-chain. With 100% on-chain execution, the launch of Decibel mainnet will greatly increase the transaction throughput of the Aptos blockchain.

4. Fixed hard cap of 2.1 billion APT. Once approved by the community, no new tokens can be minted beyond this cap.

5. The Foundation will permanently lock 210 million APT. The Aptos Foundation will ensure that 210 million APT are locked and permanently staked on the network. These tokens will never be sold or distributed and will remain permanently locked.

6. Performance-linked grant issuance. In the future, the Aptos Foundation will mainly focus on providing grants and rewards that will only be disbursed after achieving key milestones related to Aptos’s role as a “global transaction engine.”

7. Launch of a programmatic buyback plan. The Aptos Foundation has committed to exploring a protocol buyback or reserve plan that will programmatically repurchase APT on the open market based on market opportunities.