In the vast universe of blockchain filled with opportunities and challenges, Aptos shines like a star striving to find its brilliant trajectory amid fierce competition. On April 17, the AIP-119 proposal was like a boulder thrown into a calm lake, creating ripples in the Aptos community and attracting the attention and contemplation of many.
When I first heard about this proposal, I was filled with mixed emotions. On one hand, I admire the Aptos team for their courage to break the status quo and seek transformation; on the other hand, I couldn't help but worry about the potential short-term growing pains this initiative might bring. Gradually lowering the staking reward from 7% to 3.79% may seem like a simple numerical change, but behind it lies a deep adjustment of the Aptos ecosystem, a gamble concerning its future fate.
From a positive perspective, the AIP-119 proposal undoubtedly carries Aptos's deep desire for sustainable development. The current 7% staking yield is like a sweet yet dangerous trap, locking up a large amount of capital in staking, making the entire ecosystem seem like a stagnant pool, lacking the vitality and diversity it should have. Reducing staking rewards is like injecting a strong current of fresh water into this stagnant pool, encouraging users to step out of the comfort zone of passive staking and explore more promising on-chain applications. Fields such as DeFi protocols, re-staking, DePIN, and MEV are like plots of fertile land waiting to be cultivated, containing infinite possibilities. When capital flows into these innovative and opportunity-filled areas, the Aptos ecosystem will usher in an unprecedented prosperity, with various new applications and projects emerging like mushrooms after rain, providing users with a richer and more diverse experience.
Moreover, this initiative has a positive alleviating effect on the inflationary pressure of APT tokens. Excessively high staking rewards are like an ever-expanding balloon, placing enormous pressure on the value of the tokens. By reasonably adjusting staking rewards, Aptos is able to control the issuance speed of the currency to a certain extent, creating favorable conditions for the stability and growth of token value. In the long run, this is undoubtedly a strong guarantee for the healthy development of the Aptos ecosystem.
However, the path of transformation has never been smooth. The impact of the proposal on the profitability model of validators is like a double-edged sword, bringing opportunities while also introducing significant risks. For smaller validators, the decline in staking rewards may mean a survival crisis. They already face high operating costs and fierce market competition, and now the reduction in staking yields makes their situation even worse. Some validators may be forced to exit the market due to the inability to bear cost pressures, leading to a concentration of staking resources, which in turn undermines the decentralization of the network. The decentralization of the network is one of the core values of blockchain technology; once this characteristic is compromised, the foundation of Aptos will be severely shaken.
For APT holders, the decline in staking rewards has also put them in a dilemma. Staking has always been an important way for them to obtain stable returns, and the current reduction in yields will undoubtedly undermine their confidence in holding long-term. If a large number of holders choose to sell their APT, the market will face enormous selling pressure, and the price of the token may plummet, which would be a heavy blow to the stability and development of the Aptos ecosystem.
In the voices of the community, I have seen various different viewpoints and attitudes. Some are filled with anticipation for the proposal, believing it is an essential path for Aptos to achieve greatness; others express concerns about the proposal, fearing that short-term growing pains will leave Aptos unable to recover. Jason Chen's perspective made me see the deep foresight of Aptos officials in promoting this transformation; they are trying to stabilize the token price by reducing inflation while encouraging major holders to invest in DeFi, activating the entire ecosystem. Roger Bojcek's evaluation of the 'Bull X Proposal' reflects his appreciation for the foundation's proactive reduction of rewards and promotion of ecosystem development. However, Anymose's concern that this might offend large holders and lead to selling pressure, along with PANews's skepticism about the lack of strong ecosystem project support for the proposal, made me deeply aware of the tremendous challenges this transformation faces.
In the face of these challenges, the Aptos team has chosen not to back down. They plan to establish a community validator support project, providing grants and delegated staking to support small and medium-sized validators, maintaining the diversity and resilience of the network. At the same time, the Aptos Foundation has also committed to investing $200 million in special funds to support various ecosystem construction projects to attract a broader user and developer base. These actions show me the Aptos team's sense of responsibility and determination in the face of change; they are fully aware of the difficulties of transformation but are still resolutely moving forward.
From a more macro perspective, the Aptos team’s introduction of the AIP-119 proposal is also driven by a profound reflection on their own situation and a proactive response. Sui, another project in the Move ecosystem, has recently scored successes in price trends, ecosystem expansion, and exchange resource allocation, while Aptos's ecological construction has lagged, and the token performance has been sluggish, leading to increasing doubts within the community about the project's direction and execution capability. In such a predicament, Aptos must change in order to survive in this fierce competition. The personnel adjustments at the beginning of 2025 and the appointment of the new CEO Avery Ching undoubtedly bring new hope to Aptos. As one of the founders of the Aptos architecture, he has a solid technical background and rich industry experience, and people are looking forward to him leading Aptos out of this predicament to achieve self-repair and regain the community's trust.
The AIP-119 proposal is Aptos's painful metamorphosis, as well as a hope for rebirth. It carries Aptos's beautiful aspirations for the future while facing unprecedented challenges. In this unpredictable blockchain world, no one can succeed easily. But I believe that as long as the Aptos team can maintain their faith, actively face challenges, and continuously launch attractive DeFi products and on-chain applications, they will surely achieve a magnificent transformation in this revolution and welcome their glorious moment. I look forward to that day, anticipating that Aptos will shine even brighter in the blockchain sky.
