Aptos (APT) Proposes Slashing Staking Rewards by 47% to Boost Network Activity

A recent proposal from within the Aptos blockchain community has ignited discussion across the crypto space, as it aims to significantly reduce staking rewards

A recent proposal within the Aptos blockchain community has sparked discussion in the crypto sphere with the aim of slashing the network’s staking rewards.

Community member MoonSheisty submitted the proposal on April 18, suggesting a reduction in the current staking reward rate from 7% to 3.79% over a period of three months. The idea is to increase capital efficiency across the Aptos ecosystem and bring the network’s reward structure more in line with other leading layer-1 blockchains.

According to MoonSheisty, the current high reward rate may be discouraging broader participation in other vital areas of the network, including decentralized finance (DeFi), restaking, and blockchain infrastructure development.

“The goal is to adjust the APTs reward rate to a more competitive level while encouraging broader participation in the ecosystem,” stated MoonSheisty in the proposal.

The plan quickly gained attention on social media platform X, formerly Twitter, as the proposal on GitHub also sparked some initial hesitation from validators and smaller node operators.

One community member, ElagabalxNode, raised concerns that the reward cut could have unintended consequences. According to them, smaller validators might be forced out of the network without a compensatory program.

“Without a robust delegation or grant-based support system for smaller contributors, this change could diminish decentralization and lessen the network’s long-term security,” they added.

The proposal acknowledges this risk and suggests that a community validator program be developed in parallel. This program would potentially allocate grants and stake delegation to smaller, independent validators who actively contribute to the Aptos ecosystem, helping to keep the validator pool diverse and distributed.

Aptos, launched in 2021 by a team of former Meta engineers, has become a notable player in the layer-1 blockchain space. As of April 18, the network has a total value locked (TVL) of $974 million, according to DefiLlama.

Of that amount, approximately $320 million in TVL comes from the lending platform Aries Markets, a significant portion of the total.

The network has seen increasing activity in recent months as users and institutions are engaging more with the Aptos ecosystem.

However, with institutions deploying large validators and smaller validators struggling to maintain their minimum required stake, the conversation around how to balance incentives with network sustainability has become more common.

High staking rewards, while attractive to investors and stakers, can sometimes have downsides. They can limit users’ willingness to engage in more dynamic parts of the ecosystem.

With lower staking rewards, users may be more likely to explore options such as restaking protocols, participation in MEV (maximal extractable value) strategies, and the growing DePIN (Decentralized Physical Infrastructure Networks) space, which could benefit the network’s overall health and innovation.

Across the broader crypto landscape, staking reward rates differ significantly. For example, data from CoinLedger shows that the BNB Smart Chain currently offers among the highest real staking returns at 7.43%, while Cardano’s rate lags far behind at just 0.55%.

These disparities are often tied to differences in tokenomics, inflation models, and each blockchain’s individual priorities.

It’s also not uncommon for staking models to evolve over time. In recent months, other networks have introduced or considered proposals to adjust staking rules.

Polkdot, for instance, advanced a plan to reduce its unbonding period to just two days. Starknet and Ethereum communities have also discussed and implemented changes in their respective staking mechanisms.

Ethereum co-founder Vitalik Buterin recently suggested new ways to mitigate centralization risks tied to staking dominance.

As the Aptos proposal remains open for community feedback, it marks another step in the network’s evolution toward long-term sustainability. It also indicates a broader trend across Web3 platforms: finding the right balance between user incentives and protocol health.

Ultimately, if the community approves the reward reduction, the shift could dramatically alter how people participate in the Aptos ecosystem. It may pave the way for more diverse financial activity on the network.

However, it will require careful planning to ensure smaller validators aren't left behind and that the network continues to decentralize over time.