Aptos community proposal AIP-119 proposes to gradually reduce the APT staking yield to 3.79% over three months

According to ChainCatcher news, as shown on the Aptos governance proposal page, community member moon shiesty submitted the AIP-119 proposal, suggesting a monthly reduction of 1% in the staking annual yield over the next three months, to an eventual rate of approximately 3.79%. This proposal aims to serve as a preliminary attempt at restructuring the Aptos economic model, with plans for gradual implementation over six months to assess its potential impact.

The proposal argues that the current ~7% staking yield is too high, reducing capital efficiency and encouraging the community to explore riskier or costlier opportunities such as restaking, DePIN infrastructure, MEV, and DeFi rewards. Although lowering staking rewards may reduce the incentives for holding APT, the proposal believes that the reduction in inflation combined with new reward mechanisms is expected to offset the impact.

The proposal points out that this move may impact small validators and suggests considering support for validators holding less than 3 million APT through a community staking program, as well as discussing more efficient long-term incentive methods. The proposal is expected to undergo community and foundation review in the next four weeks, with a mainnet vote to be submitted in the fifth week.