Aptos (APT), a notable altcoin, is taking significant steps to encourage its users to participate more actively by proposing a decrease in stake rewards. The aim is to curtail the passive earning potential that does not contribute to the ecosystem’s growth. If the proposal, identified as AIP-119 and supported by key figures like Sherry Xiao from Aptos Labs, goes through, the current stake reward rate of about 7% could drop to 3.79% in just three months. Community feedback is being solicited for the next four weeks regarding this initiative.
How Will Smaller Validators Be Affected?
This planned reduction in stake rewards may create considerable hurdles for smaller validators. These participants already struggle with high operational costs and technical demands, and a decline in revenue could push them out of the network. One validator voiced serious concerns, warning that such measures could significantly threaten decentralization if not accompanied by robust support mechanisms.
Can Smaller Validators Survive Without Support?
In light of these challenges, developers like Moon Shiesty have called on the Aptos Foundation to consider a support initiative akin to Solana‘s stake matching program. Such a program could aid smaller validators in recuperating lost income while also encouraging them to explore alternative revenue avenues, like RPC services and transaction packaging.
Xiao emphasized that the initiative should also involve reassessing the stake shares of less active validators, redistributing these shares to those more engaged. This strategy would promote a healthier incentive structure to drive long-term growth within the Aptos ecosystem.
Presently, Aptos offers an annual stake yield around 7%, surpassing Ethereum’s 3.1%. Yet, some blockchain platforms, such as Cosmos, provide rewards as high as 15% for ATOM coins. By reducing its stake rewards, Aptos seeks to motivate users to pursue riskier, higher-yielding investments rather than relying on passive income.
Recent discussions in the Solana network reflect similar themes, where a proposal aimed at changing a fixed inflation model to a dynamic one based on staking participation was ultimately rejected for undermining decentralization. This indicates that Aptos is navigating through comparable debates.
- Aptos proposes decreasing stake rewards from 7% to 3.79% to encourage active participation.
- Smaller validators may face operational challenges due to reduced revenue.
- Developers are advocating for support programs to aid smaller entities in the network.
- The aim is to redirect rewards to active participants, fostering growth.
The path ahead for Aptos will greatly depend on community feedback and the willingness of users to adapt to a more dynamic and active role in the ecosystem.
