A recent proposal from within the Aptos blockchain community has ignited discussion across the crypto space, as it aims to significantly reduce staking rewards for the network’s native token, Aptos (APT). The proposal, submitted on April 18 by a community member using the handle MoonSheisty, suggests slashing the current staking reward rate from 7% to 3.79% over a period of three months.

The idea behind the proposed reduction is to increase capital efficiency across the Aptos ecosystem while bringing the network’s reward structure more in line with other leading layer-1 blockchains. According to the proposal, the current high reward rate may actually be discouraging broader participation in other vital areas of the network, including decentralized finance (DeFi), restaking, and blockchain infrastructure development.

The plan quickly caught attention on social media platform X (formerly Twitter), while early reactions on GitHub indicate some hesitation among the community, particularly from validators and smaller node operators. One community member, known as ElagabalxNode, voiced concern that the reward cut could have unintended consequences, such as driving smaller validators out of the network. Without a compensatory program in place—like a robust delegation or grant-based support system—this kind of change could weaken decentralization and reduce the network’s long-term security.

The proposal acknowledges this risk and suggests that a community validator program be developed in parallel. Such a program would potentially allocate grants and stake delegation to smaller, independent validators that actively contribute to the Aptos ecosystem, helping to keep the validator pool diverse and distributed.

Aptos was introduced in 2021 by a team of former Meta engineers and has quickly emerged as a noteworthy player in the layer-1 blockchain space. As of April 18, the network holds a total value locked (TVL) of $974 million, according to DefiLlama, with approximately $320 million of that TVL originating from the lending platform Aries Markets. While the network has grown steadily in both user activity and on-chain value, conversations around how to balance incentives with network sustainability have become more common.

High staking rewards, while attractive to investors and stakers, can have downsides. By offering a relatively stable and passive income stream, staking can limit users’ willingness to engage in more dynamic and potentially rewarding parts of the ecosystem. MoonSheisty argues that with lower staking rewards, users may be more likely to explore options such as restaking protocols, participation in MEV (maximal extractable value) strategies, and the growing DePIN (Decentralized Physical Infrastructure Networks) space—all of which could benefit the network’s overall health and innovation.

Across the broader crypto landscape, staking reward rates differ significantly. For example, data from CoinLedger shows that the BNB Smart Chain currently offers among the highest real staking returns at 7.43%, while Cardano’s rate lags far behind at just 0.55%. These disparities are often tied to differences in tokenomics, inflation models, and each blockchain’s individual priorities.

It’s not uncommon for staking models to evolve over time. In recent months, other networks have introduced or considered proposals to adjust staking rules. Polkadot, for instance, put forward a plan in June 2024 to reduce its unbonding period to just two days. Starknet and Ethereum communities have also debated and implemented changes in their respective staking mechanisms, with Ethereum co-founder Vitalik Buterin even suggesting new ways to mitigate centralization risks tied to staking dominance.

Though the Aptos proposal remains under community review, it marks another step in the network’s evolution toward long-term sustainability. It also reflects a broader trend across Web3 platforms: finding the right balance between user incentives and protocol health.

Ultimately, if the community approves the reward reduction, the shift could reshape how APT holders participate in the ecosystem. It may open the door for more diverse financial activity on the network, but it will also require careful planning to ensure smaller validators aren’t left behind.