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AIP-137: Enhancing APT Token Economics #643

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AIP-137: Enhancing APT Token Economics
ahmmsr08-debug Dec 10, 2025
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Rename aip-137.md to aip-138.md
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---
aip: 'TBD'
title: "Proposal for Enhancing APT Token Economics"
status: "Draft"
authors: ["ADAM"]
created: 2025-12-10
---

## Summary
Dear Aptos Foundation Team,

As an investor and supporter of Aptos, which excels in speed, security, and scalability, I believe the Foundation's goal is a sustainable ecosystem for dApps and innovation, not short-term speculation.

I propose a strategy: Token Burning, Reducing Monthly Issuance, Token Buyback, and Making APT a Core Foundation Asset. This leverages the low price (~$1.8) for long-term value.

## Proposal Details
- **Token Burning:** Burn reserve tokens or fees by sending to inaccessible addresses, reducing circulating supply (~735M APT) and inflation (20-25% annually).
- **Reducing Monthly Issuance:** Cut December's 11.3M APT by 50%, aiming for finite supply post-transition.
- **Token Buyback:** Use fees/partnership revenues to buy APT on market, then burn or reserve.
- **Making APT a Core Asset:** Hold APT in reserves, linking value to project success and avoiding forced sales.

## Reasons
Rapid issuance causes selling pressure and erodes investor confidence. Focus on adoption, not speculation. Revenues from apps like DecibelTrade can fund operations without excess issuance.

### Positive Returns at Low Price:
- **Scarcity & Value:** Supply reduction boosts price via demand, as seen with Binance Coin (BNB), which experienced sustainable growth after regular burning programs. Reduces inflation, attracts investors.
- **Trust & Stability:** Shows commitment, draws institutions/developers, cuts volatility from unlocks. Burning offsets inflation for price stability.
- **Ecosystem Enhancement:** Ties APT value to apps/partnerships, promotes usage over speculation, funds growth sustainably.
- **Economic Benefits:** Buyback at low cost yields future gains, strengthening reserves. Studies show up to 50% value increase, lower collapse risks.

This aligns with Aptos' vision, turning APT into a scarce asset. Open to discussion; happy to elaborate.

## Closing
Best regards,
ADAM