Aptos Tokenomics Explained – Unlock schedule, distribution of APT tokens

Aptos Tokenomics

The Aptos Foundation has officially announced the Aptos tokenomics. The entire summary of the token structure of the Aptos protocol is detailed below to tell you how the tokens are divided into different categories and what’s the unlock schedule for the Aptos (APT) tokens.

Initial Supply of Aptos APT token

Mainnet was launched on October 12, 2022. The initial total supply of Aptos tokens (APT) at mainnet was 1 billion tokens. APT will have 8 digits of precision as part of the fraction where the minimal unit is called an Octa.

Category % of Initial Token Distribution Initial Tokens
Community 51.02% 510,217,359.767
Core Contributors 19.00% 190,000,000.000
Foundation 16.50% 165,000,000.000
Investors 13.48% 134,782,640.233

Distribution Schedule for the Community and the Aptos Foundation

A majority of the tokens from the community pool are designated for things related to the ecosystem, including grants, incentives, and other growth initiatives within the community. Some of the community tokens have already been given to projects that are building on the Aptos ecosystem, and only on reaching certain milestones, the tokens will be unlocked and granted.

A majority of these tokens (410,217,359.767) are held by the Aptos Foundation, and a smaller portion (100,000,000) is held by Aptos Labs. These tokens are anticipated to be distributed over a ten-year period:

  • 125,000,000 APT available initially to support ecosystem projects, grants, and other community growth initiatives now and in the future for the Community category
  • 5,000,000 APT available initially to support the Aptos Foundation initiatives for the Foundation category
  • 1/120 of the remaining tokens for the community and the Foundation are anticipated to unlock each month for the next 10 years.

Distribution Schedule for Core Contributors and Investors

The core contributors and investors are put into a 4-year lock-up schedule, and this only excludes the staking rewards if there are any, from the mainnet launch. Following is the schedule for the unlock of investors’ and core contributors’ tokens.

  • No APT available for the first twelve months
  • 3/48ths of such tokens unlock on the 13th month after the mainnet launch and each month thereafter up to and including the 18th month
  • 1/48th of the tokens unlock each month thereafter beginning on the 19th month after the mainnet launch so that all such tokens are unlocked on the four-year anniversary of the mainnet launch

Estimated Token Supply Schedule

Today, more than 82% of the tokens on the network are staked across all categories, and a majority of these are currently locked in accordance with the distribution schedule above and not available for release.

Note: Both unlocked (i.e. tokens that are available for distribution) and locked (i.e. not available for distribution) tokens can be staked

Anticipated Token Supply Changes

  • Token holders who stake their tokens to a validator operator for purposes of securing the network and achieving consensus may receive staking rewards
  • Staking rewards are split between validator operators and stakers and are not subject to restrictions on distribution
  • Currently, the maximum reward rate starts at 7% annually and is evaluated at every epoch
    The maximum reward rate declines by 1.5% annually until a lower bound of 3.25% annually (expected to take over 50 years)
  • These rewards increase the total supply of the Aptos network and are dependent on the staked amount and validator performance
  • Transaction fees are currently burned, although this may be revisited in the future with on-chain governance voting
  • All rewards and reward mechanisms are also modifiable via on-chain governance
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