title: Aptos Proposes to Slash Staking Rewards by Almost 50%

Aptos is making waves as a community member recently submitted a proposal to slash the staking rewards nearly by almost 50%

Aptos, the Layer-1 blockchain, is aiming to slash its scorching 7% staking rewards nearly by half to 3.79% over the next three months, according to a proposal submitted by community member MoonSheisty on April 18.

Aptos, the Layer-1 blockchain, is aiming to slash its scorching 7% staking rewards nearly by half to 3.79% over the next three months, according to a proposal submitted by community member MoonSheisty on April 18.

The plan, if approved, would align Aptos more closely with other Layer-1 blockchains and boost its capital efficiency, the proposal said. It also suggests that Aptos should create a community validator program to give grants and staking opportunities to the smaller validators who contribute to the ecosystem.

The proposal sparked discussions on X, and the initial feedbacks on GitHub indicated some hesitation from the community.notably, ElagabalxNode, an Aptos community member, pointed out that reducing the staking rewards without ‘compensatory mechanisms’ like a strong delegation program could drive away the smaller validators out of the network. This could impact Aptos blockchain’s decentralisation and its ability to stay strong in the long run.

Moreover, MoonSheisty claims that high staking rewards could prevent users from exploring opportunities involving high-risk and higher rewards like restaking, DePIN infrastructure, MEV, and Defi. Notably, Aptos' staking rewards are relatively high compared to other blockchains. According to TokenTerminal data, BNB Smart Chain has one of the highest real returns among major blockchains at 7.43% APY, while Cardano offers just 0.55% APY.

Aptos is known for its large ecosystem with a Total Value Locked (TVL) of $974 million, according to Defilama, out of which $320 million comes from the lending protocol Aries Markets. However, the community member suggests that the high staking rewards at 7% are designed to yield an annual return of 7% on the 3.5 billion Aptos tokens in circulation, which translates to $245 million at the current Aptos price of $70.

In essence, the proposal aims to lower the APY to 3.79% over a three-month period, which aligns with other Layer-1 blockchains and promotes capital efficiency. By reducing the payout to smaller validators, the goal is to create a program to provide grants and staking opportunities to members of the ecosystem.

Aptos validators play a crucial role in securing the network and supporting the ecosystem. When users delegate their Aptos tokens to a validator, they help to maintain the network's security and earn a portion of the block rewards, similar to interest earned on a savings account. However, instead of cash, stakers earn crypto, which can fluctuate in value.

The proposal to change the Aptos staking procedures comes as crypto projects are exploring ways to improve their tokenomics. Earlier this year, Polkadot (DOT) proposed to reduce the unstaking time for its validators to just two days, aiming to increase the efficiency of the network and enable faster response times to market conditions.

The proposal to change the Aptos staking procedures comes as crypto projects are exploring ways to improve their tokenomics. Earlier this year, Polkadot (DOT) proposed to reduce the unstaking time for its validators to just two days, aiming to increase the efficiency of the network and enable faster response times to market conditions.

Last September, Starknet, a Layer-2 scaling solution for smart contracts, introduced a new staking mechanism to enable users to easily participate in the network and earn rewards. Meanwhile, Ethereum co-founder Vitalik Buterin suggested solutions to common cryptocurrency and blockchain issues, including problems with staking.

Last September, Starknet, a Layer-2 scaling solution for smart contracts, introduced a new staking mechanism to enable users to easily participate in the network and earn rewards. Meanwhile, Ethereum co-founder Vitalik Buterin suggested solutions to common cryptocurrency and blockchain issues, including problems with staking.

Together, these developments highlight the ongoing efforts within the industry to enhance blockchain protocols and expand Web3 offerings.