Aptos Community Proposal AIP-119 Suggests Gradual Reduction of APT Staking Yield to 3.79% Over Three Months

According to the Aptos governance proposal page, community member moon shiesty submitted the AIP-119 proposal, recommending a 1% monthly reduction in staking annual yield over the next three months, eventually reaching approximately 3.79%. This proposal is intended as an initial attempt to restructure the Aptos economic model, with plans for gradual implementation over six months to assess its potential impact.

The proposal argues that the current ~7% staking yield is too high, reducing capital efficiency, and encourages the community to explore more risky or costly opportunities such as restaking, DePIN infrastructure, MEV, and DeFi rewards. Although reducing staking rewards may decrease the incentive to hold APT, the proposal believes that decreased inflation and innovative reward mechanisms may offset the impact.

The proposal notes that this move could impact smaller validators, suggesting consideration of community staking programs to support validators holding less than 3 million APT and initiating discussions on more efficient long-term incentive methods. The proposal is expected to undergo community and foundation review over the next four weeks, with a mainnet vote in the fifth week.