Aptos reveals tokenomics details after community criticism

The organization behind the Aptos project presented an overview of the protocol’s tokenomics ahead of listings on the world’s largest crypto exchanges.

1/ Creating a network for the people requires a tokenomics designed with the community and fairness at its center.

The overview of that tokenomics is available here: https://t.co/KeU7RXANkd

— Aptos (@AptosLabs) October 18, 2022

According to a statement from the Aptos Foundation, the initial supply of APT is one billion tokens.

Of this amount, 51.02% (510.2 million) are allocated to the community, 19% (190 million) to core developers. Investors will receive 13.48% (134.8 million), and the Aptos Foundation 16.5% (165 million).

Funds allocated to the team and investors have a four-year lock-up period. Assets of the Aptos Foundation and the community will be distributed over ten years according to a fixed schedule.

From the last category, initially 125 million APT are available. These funds are intended to support projects, grants and other initiatives to develop the blockchain ecosystem. The entire amount is controlled by the Aptos Foundation (410.2 million) and Aptos Labs (100 million).

It is expected that the token supply will rise to 1.5 billion by the end of 2031. The main source of issuance will be staking rewards, distributed between validators and users.

The initial maximum staking reward rate is 7%. It will decline by 1.5% annually until it reaches the target level of 3.25%. The plan is that this will take more than 50 years.

On the eve of the APT listing, leading crypto exchanges announced, including Binance, FTX and Coinbase.

“It’s not good that FTX/Binance and other firms are listing Aptos without any tokenomics transparency. Undoubtedly, this should be a prerequisite for listing anything, so that users can have basic information about what they’re buying. Or did I miss something?”

— wrote a popular Twitter analyst under the pseudonym Cobie.

It’s not great that FTX/Binance etc are all listing Aptos without any tokenomics transparency at all. Surely it should be a prerequisite to listing something that users can have the basic information on what they’re buying lol

— Cobie (@cobie) October 18, 2022

Questions about the project’s tokenomics also arose from a user with the handle Paradigm Engineer #420. He pointed out that 80% of the APT supply is effectively controlled by the project team.

The total supply of Aptos is 1,000,739,234.25, however, 821,111,362.91 is currently staked. This means that a bit over 80% of the token supply is controlled by the team and investors, as there was no airdrop nor other method as to earn mainnet Aptos tokens.

— Paradigm Engineer #420 (@ParadigmEng420) October 17, 2022

Aptos responded by publishing a disclosure of the token distribution.

According to journalist Colin Wu, the project team also asked exchanges to postpone the launch of APT-based derivatives for two weeks. However, Binance has already announced the listing of APTUSDT perpetual contracts on October 19 with 25x leverage. A similar product was announced by OKX, but with leverage up to 75x.

Exclusive: Aptos asked major exchanges not to list perpetual contracts within 2 weeks, but Binance announced that APTUSDT perpetual contracts will be listed on October 19th. Aptos is urgently persuading Binance to stop. https://t.co/4ADxe1xSS8

— Wu Blockchain (@WuBlockchain) October 18, 2022

As noted earlier, in March 2022 Aptos Labs raised $200 million, and in July closed a Series A funding round of $150 million.

In September, Binance Labs supported the project as a strategic partner.

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