New Blockchain Aptos Unveils Controversial Tokenomics, APT Incentive Plans

Tokens that private investors hold are subject to a 12-month lockup, while the entire circulating supply will be released in the next 10 years.

AccessTimeIconOct 18, 2022 at 8:42 a.m. UTC
Updated May 9, 2023 at 3:59 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Recently launched blockchain Aptos published a summary of its token distribution and incentive plans amid reports of a slower-than-expected start and community criticism surrounding the amount of its native APT tokens held by private investors.

The initial total supply of Aptos tokens at Monday’s mainnet launch was 1 billion, with some 510 million distributed to community members, 190 million to core developers and the remaining to the Aptos Foundation and private investors.

The Aptos Foundation holds 410 million tokens overall, which will be released over the next 10 years. Of that, 125 million APT is available initially to support ecosystem projects, grants, and unspecified community growth initiatives, and a smaller 5,000,000 APT available initially to support the Aptos Foundation initiatives for the Foundation category.

Another 100 million tokens are held by Aptos Labs, a centralized entity that develops and maintains the blockchain.

Aptos said tokens held by private investors and current core contributors are subject to a four-year lockup schedule from the mainnet launch.

Untitled.png

There are rewards for holders who stake their tokens to contribute to the network’s upkeep. “Currently, the maximum reward rate starts at 7% annually and is evaluated at every epoch,” the post read.

“The maximum reward rate declines by 1.5% annually until a lower bound of 3.25% annually,” it added, pointing out that all transaction fees are currently burned but this may change based on future governance decisions made by the Aptos community.

Community sentiment toward the token plan remained largely tepid, with most criticizing the large allocation for developers.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about