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ETH $1,936.28 -0.11%
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SOL $81.67 -4.53%
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LINK $8.64 -2.97%
HYPE $28.98 -1.81%
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ap

Aptos updates token economic model: supply capped at 2.1 billion, Gas fees increased by 10 times, and buyback plan initiated

Aptos announced an update to the APT token economic model, shifting to a performance-driven token supply mechanism that links APT supply to the actual usage of the network. Specifically, this update includes the following seven items:Reduce staking reward rate and incentivize long-term stakers. The Aptos Foundation has proposed to lower the annual staking reward rate from 5.19% to 2.6%. Additionally, the Aptos Foundation is exploring a governance proposal to change the staking framework to better align incentives with long-term network participation.Increase Gas fees by 10 times. Aptos is currently one of the lowest-cost blockchains, and given the current transaction fees are so low, the Aptos Foundation will propose to increase Gas fees to 10 times the current amount through governance proposals. After the increase, the transfer fees for stablecoins on the network will still be as low as approximately $0.00014.Transaction utilization and fees. A new deflationary mechanism will be introduced through the decentralized exchange protocol Decibel on the Aptos chain, where high-frequency trading activities will significantly consume and destroy APT. Currently, all forms of transactions paid in APT on the network, or "gas fees," will be permanently destroyed. Decibel, incubated in collaboration with Aptos Labs and the Decibel Foundation, represents one of the first fully decentralized exchanges where all trading activities are executed on-chain: every order, match, and cancellation is executed on-chain. With 100% on-chain execution, the launch of Decibel's mainnet will greatly enhance the transaction throughput of the Aptos blockchain.Hard supply cap fixed at 2.1 billion APT. Once approved by the community, no new tokens will be minted beyond this cap.Foundation permanently locks 210 million APT. The Aptos Foundation will ensure that 210 million APT are locked and permanently staked in the network. These tokens will never be sold or distributed and will be permanently locked.Performance-linked grant issuance. In the future, the Aptos Foundation will primarily focus on providing future grants and rewards that will only be redeemed upon achieving key milestones related to Aptos's role as a "global transaction engine."Launch a programmatic buyback plan. The Aptos Foundation has committed to exploring a protocol buyback plan or reserve that will programmatically buy back APT on the open market based on market opportunities.
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