| aip | title | author | discussions-to (*optional) | Status | last-call-end-date (*optional) | type | created | updated (*optional) |
|---|---|---|---|---|---|---|---|---|
30 |
Implement decrease in staking rewards |
michelle-aptos, xindingw, junkil-park |
Accepted |
<mm/dd/yyyy the last date to leave feedbacks and reviews> |
Framework |
5/3/2023 |
7/28/2023 |
In Aptos tokenomics overview, Aptos Foundation presented the anticipated token supply changes across time. Currently, the maximum staking reward rate is a constant annualized rate of 7%. This AIP proposes a 1.5% yearly decrease in staking rewards to align with Aptos tokenomics:
- The maximum reward rate declines by 1.5% yearly until a lower bound of 3.25% annually (expected to take over 50 years).
For example:
- Maximum reward rate in the 1st year(year starts from genesis timestam 2023/10/12):
$7\%$ - Maximum reward rate in the 2nd year:
$7\% * (100\%-1.5\%) = 6.895\%$ - Maximum reward rate in the 3rd year:
$7\% * (100\%-1.5\%)^2 = 6.791575\%$ - ...
- Maximum reward rate in the 51rd year:
$7\% * (100\%-1.5\%)^50 \approx 3.28783\%$ - Maximum reward rate in the 52nd year:
$max(3.25\%, 7\% * (100\%-1.5\%)^{51}) = 3.25\%$
To fully align with Aptos tokenomics overview.
Considerations:
- Year starts from date of genesis: timestamp based (10/12)
- 1.5% decrease happens at the end of every year. This means that at the current rewards rate (7%), the effective rewards rate at the end of the year would be 6.895% (7%-1.5%*7%)
Alternative solutions:
- We can compute gradual decreases throughout the year(e.g. every 30 days), but this would make rewards calculations more complex
All rewards and reward mechanisms are also modifiable via on-chain governance
Targeting end of Q3 2023