Aptos Updates Tokenomics: 2.1 Billion APT Supply Cap, Foundation Locks 210 Million

Aptos has announced an update to the APT tokenomics model, transitioning to a performance-driven token supply mechanism that ties APT supply directly to actual network usage. The key updates include the following seven items: 1. Significant reduction in staking rewards: The annualized reward rate will decrease from the current ~5.19% to 2.6%, while exploring new frameworks to incentivize long-term stakers. 2. Gas fees increased tenfold: Fees will remain extremely low (approximately $0.00014 for stablecoin transfers), aiming to reduce inefficient usage and support deflation. 3. Introduction of a new deflationary mechanism: Large-scale APT burns will be enabled via on-chain DEXs (e.g., Decibel) driven by high-frequency trading. 4. Hard supply cap: A fixed total supply of 2.1 billion APT, with no additional issuance beyond this limit (current circulating supply: ~1.196 billion; remaining unissued tokens: ~904 million, approximately 43%). 5. Permanent locking of foundation tokens: 210 million APT will be permanently staked and locked, never sold or distributed. 6. Performance-based grants and rewards: Future foundation grants and rewards will only be disbursed upon achieving key milestones for the “Global Transaction Engine.” 7. Initiation of programmatic buybacks: The foundation commits to exploring a market-based APT buyback program, with potential repurchases, burns, or reserves based on market opportunities.