Aptos has unveiled a major tokenomics overhaul that shifts the protocol away from inflation-driven incentives toward a tighter, performance-focused model aimed at shrinking net supply as on-chain activity scales. Big-picture changes - Hard supply cap: The protocol would introduce a protocol-level cap of 2.1 billion APT. With roughly 1.196 billion APT currently circulating, about 904 million APT (≈43% of the cap) remain available for future issuance. - Staking and lockups: Annual staking rewards would be cut from 5.19% to 2.6% — nearly halving ongoing emissions. Aptos also plans a redesigned staking framework that rewards longer lock-ups with relatively higher yields while keeping total rewards inside the reduced-emissions envelope. - Permanent lock & stake: The foundation will permanently lock and stake 210 million APT (about 18% of today’s circulating supply). These tokens will be removed from liquid supply but still secure the network through staking. - Emission management & validator costs: The foundation says the subsidy phase that bootstrapped validators is ending as the chain pivots to institutional-grade, high-throughput apps. AIP-139 upgrades are expected to lower validator operating costs and support the new economics. - Unlock schedule and grant cuts: A key inflection arrives in October 2026 when a four-year unlock cycle for early investors and contributors concludes. Annual unlocks are set to fall by roughly 60%. Foundation grant distributions are also slated to decline by more than 50% year-over-year between 2026 and 2027. The reforms aim to formalize this transition rather than relying on vesting cliffs alone. Market reaction and context The update arrives as APT trades around $0.88, down about 4.5% on the day and more than 50% off late-2025 highs. Price charts (TradingView) show persistent lower highs and weak momentum into mid-February. So far, the market’s immediate response has been muted — broader macro and risk-on/risk-off conditions appear to be driving price action more than long-term tokenomics narratives. Why it matters Aptos’ proposal reframes its incentives from inflationary bootstrapping to a long-duration, performance-driven model designed to: - Reduce long-term supply issuance, - Reward committed stakers and longer-term participation, - Lower ongoing validator costs, and - Provide predictable, capped issuance via a hard supply limit. The foundation is positioning the changes as structural and long-term rather than as a near-term price catalyst. Disclaimer This summary is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making financial decisions. Read more AI-generated news on: undefined/news