Aptos Foundation commits to permanently locking 210M APT—but it is not a burn

Introduction

The Aptos Foundation has announced a significant move to permanently lock and stake 210 million APT tokens, removing them from any future sale or distribution. This commitment aims to reduce the Foundation's holdings that could eventually reach the market and prune APT's supply growth.

Background

At network launch, the Foundation held approximately 37% of Aptos' APT. All of these tokens will be committed towards the growth of the Aptos ecosystem without selling any of them at any time.

The Permanent Lock

The 210 million APT will be staked to help support the network, generating rewards that the Foundation will use to supplement its operations instead of selling the underlying tokens. This approach differs from a traditional 'burn' where the tokens are permanently destroyed, reducing the total supply available.

Implications

This move is part of efforts to prune APT's supply growth and reduce the Foundation's holdings. Aptos also intends to cut staking rewards, increase transaction fees, and install a maximum supply of 2.1 billion APT. Further development and governance approval are required for some of these changes.

Conclusion

The Aptos Foundation's commitment to permanently locking 210 million APT tokens marks an important step in its efforts to manage the supply growth of APT and ensure the sustainability of the Aptos ecosystem.