Aptos Inflation Governance Sparks Controversy: Can Dropping Stake Rewards Activate the Ecosystem?

Recently, the Aptos community has engaged in intense discussions surrounding a proposal to drop staking rewards. This proposal aims to curb inflation by adjusting staking rewards, but it has also raised concerns about the decentralization of the network and the flow of funds. This debate is not only related to the future of the APT token economy but also reflects deep-seated contradictions in the governance of PoS public chains.

Proposal Content and Controversies

The proposal suggests gradually reducing the base staking rewards rate of Aptos from approximately 7% to 3.79% within three months. Supporters believe that this will not only alleviate APT inflation but also incentivize users to invest their funds into other on-chain DeFi activities rather than solely relying on passive staking.

However, there are also many opposing voices. Some are concerned that a significant reduction in staking rewards could severely impact small validators, potentially leading them to exit the network due to an inability to cover operational costs, ultimately weakening the decentralization of Aptos. Some analyses point out that the reduced staking yield may lack competitiveness, resulting in capital outflow and affecting Aptos's TVL and liquidity.

Common Challenges of PoS Public Chains

In fact, the dilemma faced by Aptos is quite common in PoS public chains. Finding a balance between controlling inflation and maintaining network activity is a topic that major public chains are exploring.

Compare the strategies of several mainstream PoS public chains:

1. Solana adopts a year-on-year decreasing inflation model, currently with an inflation rate of about 4.58% and a stake ratio of about 65%.

2. Sui has a total token supply cap, with a relatively low stake yield (2.3%~2.5%), but the staking rate is as high as 76.73%.

3. The staking yield of Cosmos reaches 14.26%, but the token price performance is poor.

4. Ethereum has achieved deflation through its transition to PoS and the burning of base fees, but its price performance has not significantly improved as a result.

The Choice of Aptos

For Aptos, while considering "throttling" by dropping staking rewards, it may be more necessary to think about how to "open source"—that is, to enhance network activity and attract more quality projects. Currently, Aptos's TVL is only $1.1 billion, ranking 11th, with 149 validators and 495 full nodes, indicating significant room for improvement.

Compared to aggressively dropping rewards, the more urgent task at the current stage may be to build a truly prosperous and sustainable ecosystem. This can not only bring long-term value support to APT but also alleviate inflationary pressure to a certain extent.

While solving problems through governance proposals, Aptos also needs to pay more attention to how to enhance network value and attract more users and developers to participate. Only on the basis of a prosperous ecosystem can a better balance of interests be achieved, leading to long-term healthy development.