In the latest post on X, Aptos revealed a proposal entitled ‘AIP-119’, which suggests a monthly reduction of 1% in staking annual yield over the next three months, ultimately reaching approximately 3.79%.
With the proposal, Aptos plans to launch an initial attempt at restructuring the Aptos economic model. It is planned to be implemented over the next 6 months to gauge possible impact.
im proposing @Aptos AIP-119 to reduce the staking reward rate by 3% over 3 months: from ~7% to 3.79% APR
the motivation for this change is simple; the current staking rate is too high
this change will bring aptos base staking rewards in-line with other layer-1 blockchains and… pic.twitter.com/OwzUDECgI6
— moon shiesty (@moon_shiesty) April 18, 2025
Aptos Reduces Capital Efficiency
According to the proposal, the current staking rewards of approximately 7% are lofty. It reduces capital efficiency, which ultimately forces the community to explore riskier or more costly options like restaking, DePIN infrastructure, MEV, and DeFi rewards.
“A new AIP from the Aptos community proposes adjusting Aptos staking rewards to better align incentives and support DeFi growth & participation,” Aptos stated in the tweet.
The AIP-119 proposal, proposed by Moon Shiesty, is planned to review the proposal over four weeks, with plans for a mainnet vote in the following week.
As Moon Shiesty, the proposal author, remarked, “The proposed reduction in staking yield aims to improve capital efficiency and curb excessive inflationary rewards.”
If approved, AIP-119 could impact small validators, which plans to consider supporting validators with less than 3 million APT through a community staking program. It also plans to start discussions on more efficient long-term incentive methods.
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