Key Takeaways from the AIP Review Session: Exploring Staking Reward Rate Changes

The latest AIP review session brought forward important discussions around a potential reduction in the staking reward rate and its broader implications for the Aptos ecosystem. Below is a summary of the key points covered:

  • Potential benefits of lowering the staking reward rate: Participants explored how reducing the reward rate could help redirect capital toward more active DeFi participation and encourage alternative revenue streams such as MEV. A draft AIP on priority fees has been published in the repository for further review. It was emphasized that this adjustment does not necessarily imply lower overall yields; Aptos DeFi yields may remain competitive through ongoing Foundation incentives and future efforts toward more sustainable yield products.
  • The need for a holistic approach: It was acknowledged that lowering the reward rate alone is not sufficient. The ecosystem must also develop more attractive protocols and opportunities that incentivize users to stay, build, and grow within Aptos.
  • Support for gradual implementation: There was general consensus that any adjustment should be phased in carefully to avoid negatively impacting users engaged in strategies such as looping. A proposal was raised to reduce the rate by 1% over a three-month period to allow for a smoother transition. This approach is currently under consideration, with detailed reduction figures to be finalized.
  • Validator sustainability considerations: The discussion included potential measures to support validator sustainability, particularly for smaller nodes. Suggestions included introducing shorter lockup periods to attract more risk-averse users who may not currently participate in staking or DeFi, thereby broadening the staking base.

Next steps:

  • Continue gathering feedback from diverse user groups.
  • Final recommendations, including the proposed reduction rate and implementation timeline, will be summarized within two weeks.
  • The finalized AIP is expected to be submitted to mainnet governance for a vote around May 20.

The session reflected a shared commitment to balancing ecosystem growth, user participation, and validator sustainability.

1 Like