What is the AIP-199 governance proposal? Can Aptos regain the glory of the MOVE public chain twin stars through the redistribution of staking benefits?

As people gradually forget that Aptos was once a twin star public chain alongside Sui with the MOVE language, only remembering BLACKPINK ROSE’s virally popular song APT, the governance forum of Aptos has proposed the AIP-119 proposal. In short, the proposal aims to reduce the staking rewards of Aptos as a PoS public chain, attempting to drop token inflation, reduce loan-to-value, and further release capital efficiency.

(BLACKPINK ROSÉ collaborates with Bruno Mars on the single APT., APTOS simultaneously surges 40%)

AIP-199 aims to drop the stake rewards to 3.79%.

Specifically, the AIP-199 plan aims to drop the staking rewards by 1% each month over the next 3 months. It is expected to reduce the staking reward rate to approximately 3.79%. The implementation will be phased over 6 months to observe and adjust the impact. Additionally, the proposal also explores the possibility of redistributing rewards, such as allocating part of the rewards to enhance liquidity, infrastructure development, and developer subsidies, among others.

This proposal has also raised concerns about the survival pressure on small validators. According to statistics, there are currently 53 validators whose staked amount is less than 3 million $APT, which may be most affected by the adjustments. Therefore, this proposal also considers providing a “Community Validator Subsidy Program” to support small validators with a stake of less than 3 million $APT.

The goal is to bring the token inflation rate closer to other L1.

The main goal of this proposal is to address the design of early high-inflation Token issuance, which was primarily used to incentivize validators and infrastructure. However, when the stake rewards ( are nearly risk-free ) and exceed the DeFi rewards, it leads to an excessively high loan-to-value, crowding out the development of DeFi. At the same time, most of the newly minted $APT currently flows to the Aptos Foundation, which holds over 90% of the staked (.

Many validators rely on cost-free staking tokens granted by the foundation to profit. Simply put, assuming the current inflation rate is 7%, and about 10 million APT ) has at least 30 validators owning over 10 million $APT(, then validators can earn approximately 49,000 $APT annually. Considering that the annual cost for validators at this level is about $30,000, this brings them substantial risk-free profits. If the proposal passes, it is expected to bring $APT staking rewards closer to the risk-free return rates of other L1 chains.

What is the AIP-199 governance proposal? Can Aptos regain the glory of the MOVE public chain twin stars through the redistribution of staking rewards? First appeared in Chain News ABMedia.