A governance proposal by Aptos, labelled AIP-119, has stirred intense conversation within the crypto network. The plan suggests cutting stakeholder rewards from 7% to 3.79%, prompting support and opposition across different stakeholders. Aptos Push for Innovation Faces Resistance from Validators According to reports, the main argument behind AIP-119 is to move user focus from passive staking to more active use of capital within the ecosystem. Many supporters believe the current 7% reward encourages holding tokens without driving innovation. According to their position, reducing this yield can free up capital to support activities such as restaking, MEV extraction, and deeper participation in DeFi protocols. Proponents also argue that high-stakes returns are similar to excessive interest rates in traditional finance. The proposal’s authors describe the 7% as a risk-free benchmark and stress their position by stating that it might be holding the system back from realistic growth. Some, like crypto user Moon Shiesty, believe the drop in staking demand will be balanced out by inflation control and new projects launching in the next half-year. He mentioned that funds saved from staking rewards could be used to support early Layer 1 stablecoins through incentives and lower gas fees. Meanwhile, Aptos recently shifted its focus toward strengthening its NFT and DeFi ecosystem . This aims to attract developers and projects looking for alternatives to Ethereum and Solana. Smaller Validators Fear Getting Priced Out It is worth noting that not everyone agrees. The report also disclosed that smaller validators say the proposal could hurt their ability to remain in the network. Running a validator node on Aptos costs between $15,000 and $35,000 annually. With rewards dropping, some fear they might not break even. The report details that more than 50 validators currently hold less than 3 million APT each. They represent just 9% of the total network but are important for maintaining decentralization. The proposal includes a delegation plan to support these operators by assigning extra tokens to help them stay afloat. Call for Balance in Governance Decisions It is important to add that notable Voices like Yui, COO of Slime Revolution, are urging caution. While speaking on the development, she warned that pushing out smaller players could affect the system’s health in the long run. Meanwhile, others argue that lowering emissions could lead to price growth, making up for the lower yield. The proposal remains under review, with the community watching closely. In related news, Aptos recently unveiled new upgrades for faster and more scalable blockchain solutions. According to reports, the upgrade was designed to increase transaction throughput and reduce latency. The post Aptos Community Divided Over Plan to Cut Staking Rewards appeared first on TheCoinrise.com .