Aptos updates its token economic model: supply capped at 2.1 billion tokens, gas fees increased tenfold, and a buyback program launched.

Aptos has announced an update to its token economics model, shifting to a performance-driven token supply mechanism that links APT supply to actual network usage. Specifically, the update includes seven key changes: 1. Reducing staking rewards and incentivizing long-term stakers. The Aptos Foundation has proposed reducing the annualized staking reward rate from 5.19% to 2.6%. Additionally, the Aptos Foundation is exploring a governance proposal to change the staking framework to better align incentives with long-term network participation. 2. Increasing gas fees tenfold. Aptos is currently one of the lowest-cost blockchains, and given the current low transaction fees, the Aptos Foundation will propose increasing gas fees tenfold, while still maintaining stablecoin transfer fees on the network at approximately $0.00014. 3. Transaction utilization and fees. Decibel, a decentralized exchange protocol on the Aptos blockchain, introduces a new deflationary mechanism that will massively consume and destroy APT through high-frequency trading activity. Currently, all transactions or "gas fees" paid on the network in the form of APT will be permanently destroyed. Incubated by Aptos Labs in partnership with the Decibel Foundation, Decibel represents one of the first fully decentralized exchanges to execute all trading activities on-chain: every order, matching, and cancellation is executed on-chain. With 100% on-chain execution, the Decibel mainnet launch will significantly increase the transaction throughput of the Aptos blockchain. 4. A hard supply cap of 2.1 billion APT is fixed. Once approved by the community, no new tokens can be minted beyond this cap. 5. The Foundation permanently locks 210 million APT. The Aptos Foundation will ensure that 210 million APT is locked and permanently staked on the network. These tokens will never be sold or distributed and are permanently locked. 6. Performance-linked grant issuance. Going forward, the Aptos Foundation will primarily focus on providing future grants and rewards, which will only be cashed out upon achieving key milestones related to Aptos' role as a "global trading engine." 7. Launch a programmatic buyback program. The Aptos Foundation has committed to exploring a protocol buyback program or reserve that will programmatically repurchase APT on the open market based on market opportunities.