In a bold move to improve capital efficiency, the Aptos community is buzzing over a fresh proposal that aims to cut staking rewards nearly in half — from 7% down to 3.79% over the next three months.

The proposal, submitted on April 18 by a community member known as MoonSheisty, is stirring up discussions across platforms like X and GitHub. The idea? Bring Aptos more in line with other layer-1 blockchains while encouraging users to explore riskier, high-reward opportunities within the ecosystem.

But not everyone’s on board.

Community member ElagabalxNode voiced concerns on GitHub, warning that slashing rewards without backup plans—like a strong delegation program—could squeeze out smaller validators. And that could spell trouble for Aptos’ decentralization and long-term network resilience.

To address that, the proposal also suggests the introduction of a Community Validator Program, which would provide grants and delegation support to smaller validators helping power the network.

Why the Change?

While high staking rewards attract token lock-ins and network support, they can also reduce participation in other innovative sectors of Aptos, like:

Restaking

Decentralized Physical Infrastructure Networks (DePIN)

MEV (Maximal Extractable Value)

DeFi protocols

MoonSheisty’s argument is clear: lower rewards could free up capital and inspire deeper involvement in these areas.

Where Does Aptos Stand Now?

Founded in 2021 by ex-Meta engineers, Aptos currently holds a Total Value Locked (TVL) of $974 million, with a significant chunk—around $320 million—coming from lending protocol Aries Markets, according to DeFiLlama.

How Does It Compare?

Staking returns vary widely across blockchains:

BNB Smart Chain: ~7.43% (one of the highest)

Cardano: ~0.55% (among the lowest)

Staking is often likened to earning interest on a savings account—but in crypto. It secures the network, supports validators, and earns users rewards (that fluctuate with crypto market prices).

This Isn’t the First Proposal of Its Kind

Across the Web3 world, staking models are constantly evolving:

Polkadot floated a two-day unstaking window in June 2024.

Starknet approved a dynamic staking curve last September.

Vitalik Buterin even proposed changes to Ethereum’s staking model to fight centralization.

While staking empowers users with real influence over a network, it’s a delicate balance—one that must protect decentralization while pushing innovation forward.

Bottom Line?

The Aptos community is at a crossroads: hold onto generous rewards or pivot to a leaner, more dynamic future. The next few months could reshape the ecosystem’s trajectory—and everyone’s watching.

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