The @Aptos Foundation has unveiled a sweeping redesign of $APT tokenomics, introducing a series of structural changes aimed at reducing inflation and pushing the token toward a deflationary s
The @Aptos Foundation has unveiled a sweeping redesign of $APT tokenomics, introducing a series of structural changes aimed at reducing inflation and pushing the token toward a deflationary supply model. The proposal, known as AIP-140, covers several interconnected mechanisms and is widely expected to pass governance.
What Is Changing
The four headline changes are significant. Aptos is capping its total supply at 2.1 billion APT, increasing gas fees tenfold, and reducing annual staking rewards from 5.19% to 2.6%. In addition, the Foundation plans to permanently lock and stake 210 million APT, roughly 18% of the current supply, and will not sell or distribute those tokens.Staking rewards generated from the locked holdings would go toward supporting Foundation operations.
On the gas fee side, despite the tenfold increase, stablecoin transfer costs are expected to remain low at approximately $0.00014.All collected fees will be permanently burned, meaning higher transaction volumes will translate directly into greater token removal from circulation.
The four-year unlock cycle for initial investors and core contributors concludes in October 2026, which will reduce annualized supply unlocks by approximately 60%. That shift alone improves supply dynamics, but the Foundation argues that structural reform is still necessary. Without it, emissions would continue indefinitely with no ceiling, no performance requirements, and no link between token issuance and actual network usage.
The Bigger Picture
The changes are designed to shift the network away from an inflation-subsidized model built for early-stage growth toward one where supply declines and burns scale with actual network activity.Future ecosystem grants will also be tied to performance milestones, and the Foundation is considering a buyback program funded by cash reserves and future revenue.
The changes come as Aptos anticipates a rise in on-chain transaction volume and gas fee burn following the launch of Decibel DEX, with an estimated annual burn of over 32 million APT.
The changes require approval through Aptos governance before taking effect, though momentum behind AIP-140 appears strong given the breadth of support from within the ecosystem.
Sources:Aptos Foundation Proposes 2.6% APT Staking Rate and 2.1B Cap (TokenPost)Aptos Locks 210M APT, Halves Staking Rewards to 2.6% (Finance Feeds)Aptos Overhauls Its Tokenomics With Supply Cap, Fee Hikes, and a Path to Deflation (CryptoNews)