The Aptos Foundation has committed to permanently locking and staking 210 million APT, removing the tokens from any future sale or distribution.
This reduces the Foundation holdings that could eventually reach the market. But the tokens would continue to exist and generate a reward, so it is also not a burn.
Aptos takes 210 million APT off the table
Aptos announced on October 8 that the Foundation held about 37% of Aptos’s APT at network launch, all of which will be committed toward the growth of the Aptos ecosystem without selling any of it at any time,
Once locked, the 210 million APT will be staked to help support the network, the rewards of which the Foundation said it would use to supplement its operations instead of selling the underlying tokens.
What this means is that the principal amount will not be available for sale, but the income it produces will not necessarily face the same restriction.
The move was first seen in its plan published in February. That document said the permanent lock would remove a major source of potential selling pressure.
Aptos has not specified when the lock will apply and has not provided any wallet addresses or on-chain transactions showing that the tokens are already locked.
Why the lock is not the same as burning APT
A burn permanently destroys crypto, reducing the total supply available to be recorded by the network.
In response to this, Aptos is using another approach; 210 million APT still belongs to the supply and earns rewards, but will not be available for the Foundation to sell or distribute.
This is important because they would still be able to enter circulation if the Foundation chooses to use them for their running costs.
The move is part and parcel of efforts to prune APT’s supply growth. Aptos also intends to cut staking rewards, increase transaction fees, and install a 2.1 billion maximum supply of APT.
Many of the suggested changes require further development/governance approval. The most recent proposal by the Foundation only refers to the permanent staking commitment.
Final Summary
- Aptos Foundation has committed to permanently locking and staking 210 million APT.
- The tokens will not be sold, but staking rewards may still be used to fund operations.
