Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Stake Rewards Shift: Aptos Challenges Users to Engage More Actively

Stake Rewards Shift: Aptos Challenges Users to Engage More Actively

CointurkCointurk2025/04/19 14:55
By:İlayda Peker

In Brief Aptos proposes to reduce stake rewards to encourage active user participation. Smaller validators may face exclusion due to declining revenues from stake rewards. The Aptos Foundation is urged to support smaller validators through alternative revenue sources.

Aptos (APT), an altcoin focused on enhancing active participation among its users, has proposed a gradual reduction in stake rewards. This initiative aims to limit passive earnings that do not contribute to the network’s growth, redirecting users towards more engaging and profitable activities. If accepted, the current stake reward rate of approximately 7% will decrease to 3.79% within three months. The proposal, known as AIP-119, is backed by Sherry Xiao, the Director of Production Engineering at Aptos Labs, and Moon Shiesty, a developer from the Mirage protocol. The community has four weeks to provide feedback on this proposal.

The Impact of Reduced Stake Rewards on Smaller Validators

The reduction in Aptos stake rewards could pose significant challenges for smaller validators. Already facing high operational costs and technical demands, smaller validators may find themselves at risk of exclusion from the network due to declining revenues. One validator expressed concerns, stating, “Such inflation cuts can harm decentralization significantly when imposed without a strong authorization program.”

Stake Rewards Shift: Aptos Challenges Users to Engage More Actively image 0 Proposal to Reduce Aptos Stake Rewards

In response to these potential impacts, developers like Moon Shiesty have urged the Aptos Foundation to implement a support program similar to Solana’s stake matching model. Such a program could provide smaller validators with an opportunity to recover lost income. Additionally, Shiesty recommended that validators explore alternative revenue streams, emphasizing the need to incentivize contributions to the ecosystem, such as through RPC services, MEV, data indexing, or transaction packaging.

No Room for Passive Validators

Xiao stressed that the proposal should not only reduce stake reward rates but also reassess the stake shares of inactive validators. These shares should be redirected to more active contributors, fostering a more suitable incentive structure for long-term growth within the altcoin network.

Currently, Aptos boasts an annual stake yield of around 7%, significantly higher than Ethereum $1,605 ‘s 3.1%. However, some blockchains like Cosmos offer rewards that can reach 15% for ATOM coins. The stake reward rate of Aptos is closely aligned with Avalanche ‘s AVAX coin, which offers a 7.6% stake reward. The intention behind lowering stake yields is to guide users towards higher-yielding, albeit riskier, investment options instead of relying on “zero-risk” passive income.

Last month, the Solana $139 network also presented a similar proposal for voting, which ultimately failed. The proposal, known as SIMD-228, aimed to convert a fixed inflation model into a dynamic one tied to staking participation. However, it was rejected due to concerns about jeopardizing decentralization, indicating that similar discussions are unfolding within Aptos.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!