The Aptos Foundation is initiating significant changes to its token economy that aim to fundamentally alter the dynamics of the APT cryptocurrency. Announced recently, the foundation intends to lock 210 million APT tokens, which represents around 18% of the current circulating supply. This move is designed to alleviate market pressure by permanently removing these tokens from circulation.

In their statement, the Aptos Foundation emphasized that these locked tokens will not be sold or distributed in the future. This strategy mirrors the effects of token burning but differs as the tokens will remain in a staking system indefinitely, enhancing the network’s security. The foundation plans to rely on staking rewards to fund operational expenses rather than generating income from token sales.

Modifications to Staking and Supply

Additional reforms are also on the horizon, with the foundation proposing to decrease the annual staking reward rate from 5.19% to 2.6%. Alongside this, transaction fees are set to increase tenfold, and the total supply of APT will be capped at 2.1 billion tokens. These measures are expected to limit new token issuance while boosting the token burn rate through higher transaction costs, setting the stage for potential deflation of APT over time.

Looking ahead, the foundation plans to adjust its approach to grant programs that support ecosystem projects, aligning aid with specific performance metrics. An APT buyback initiative, supported by cash reserves and future revenue streams, is also being considered as a means to further bolster the token’s value.

As the first four-year token unlock cycle concludes in October 2026, projected annual token unlocks are anticipated to reduce by approximately 60%, which could have substantial implications for the supply and value of APT in the future.

Please note: This article is for informational purposes only and does not constitute investment advice.