Aptos Locks 210M APT Forever as Staking Rewards Face Major Cut

The Aptos Foundation has announced plans to permanently lock 210 million APT tokens, valued at about $147 million. The decision aims to change the token supply and nearly halve staking rewards. By doing this, the foundation removes a significant portion of its treasury from future sales, helping holders better understand its supply direction.

At the same time, the Foundation said it will lower annual staking rewards from 5.19% to 2.6%, reducing the number of new tokens issued. These changes represent a shift from encouraging expansion to focusing on a tighter supply, more network activity, and sustainable long-term funding.

210 Million APT Off the Market

Aptos Foundation has committed 210 million APT tokens to manage its treasury in a new way as it enters a different phase. Instead of relying on selling tokens, the Foundation will permanently stake these holdings and use the rewards to support its operations.

The locked amount makes up nearly 18% of the current circulating supply and about 37% of the original tokens the Foundation holds. By staking, the Foundation will also cut the annual reward rate nearly in half, from 5.19% to 2.6%. Aptos plans to offer higher reward rates for longer staking commitments while keeping the overall rewards in line with lower emissions.

The strategy aims to keep participants focused on network security rather than pursue short-term gains from new token issues. Additionally, Aptos expects that the new architecture will lower operational costs for validators, which may help balance out the reduced token rewards over time.

Aptos Bets Network Activity Can Outrun Future Token Emissions

Alongside the permanent token lock plan, Aptos is preparing significant changes to allow network activity to directly influence whether the APT supply expands or contracts over time. The Foundation proposes a hard cap of 2.1 billion APT, which would prevent any additional minting beyond this limit once approved through community governance.

Currently, transaction fees are burned, and proposed increases in gas fees by tenfold could significantly raise the amount of APT removed from circulation each year. Additionally, the distribution of Foundation grants is expected to decline, with future grants increasingly reliant on measurable milestones and proven ecosystem performance.

Overall, Aptos aims to create a network that removes more APT tokens from circulation than what is introduced through staking. Meanwhile, recent developments have not significantly affected the price of APT, which is currently trading at $0.7369.

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