#Layer1 #defi Aptos community member MoonSheisty has submitted a proposal to significantly reduce staking rewards for the network's native token, Aptos (APT), by nearly half. The proposal aims to adjust the annual yield for validators and delegators from 7% to 3.79% in three months, ensuring the long-term sustainability and economic balance of the Aptos network.
Key Objectives:
- Align Aptos staking rewards with other layer-1 blockchains: The proposal seeks to bring Aptos' staking rewards in line with industry standards, promoting capital efficiency.
- Encourage broader DeFi participation: By reducing staking rewards, the proposal aims to steer users toward riskier, potentially more rewarding opportunities like restaking MEV, DePIN infrastructure, and broader DeFi applications.
Community Debate:
- Concerns about decentralization: Some community members, like ElagabalxNode, have expressed concerns that slashing rewards without compensatory mechanisms could undermine decentralization and long-term network resilience.
- Proposal for a community validator program: MoonSheisty has suggested establishing a program to offer grants and stake support to smaller contributors, promoting network decentralization.
Aptos Ecosystem:
- Total value locked (TVL): Aptos currently boasts a TVL of $974 million, with $320 million coming from the lending protocol Aries Markets.
- Staking system: Aptos uses a staking system with epoch-based rewards, incentivizing validators according to their active participation in network governance.
The proposal has sparked a conversation about staking dynamics among blockchains, with other networks like Polkadot and Starknet also evaluating their staking mechanisms. The outcome of this proposal will likely have implications for the Aptos network's decentralization, security, and overall ecosystem.
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