The Aptos community now stands at a critical crossroads. Now with this proposal to decimate staking rewards by almost 50%, the timing is incredibly suspect. Though the intent is to increase capital efficiency and encourage broader DeFi participation, I feel there is a great storm coming — particularly for Africa’s burgeoning DeFi ecosystem. Positively, though, it raises a critical question—are we optimizing for efficiency at the expense of inclusivity? In our quest to replicate with bad policy what other Layer-1s have done, are we accidentally crushing a financial revolution that’s soaring across Africa? Let’s not put a damper on this exciting movement.

Efficiency Now, Equity Later?

The argument for reducing staking rewards, spearheaded by "MoonSheisty," hinges on the idea that high rewards disincentivize participation in other DeFi activities. It's a valid point on the surface. Who needs restaking, DePIN, or even MEV when you can earn 7% without doing anything impressive by just holding APT. This argument, I believe, overlooks a crucial factor: context.

In developed markets, maybe a move toward a broader, more mature DeFi ecosystem is the natural next step. In Africa, where access to traditional financial services remains limited for a significant portion of the population, Aptos offers something truly revolutionary: a gateway to financial inclusion. Staking, in this context, is not merely a nice passive income stream; it is frequently an essential lifeline. It's a way for individuals with limited capital to participate in the global economy, to save, and to build wealth.

Now picture that same smallholder farmer in Kenya, empowered through Aptos to transact and receive payments for their crops. For these individuals, staking rewards could be the difference between surviving and succumbing to poverty. Or think about a young entrepreneur in Nigeria having access to decentralized lending platforms through Aptos. Lower staking rewards would increase their difficulty in bootstrapping their business and generating jobs in their local community.

Unfortunately, the proposal, though well intentioned, threatens to pull the rug out from underneath these people and businesses. Consider this your friendly warning that it’s a prime example of trying to fix an issue requiring subtlety and care with a blunt, one-size-fits-all tool.

Africa's Aptos Story: Unheard Voices

We want to understand this potential from the African communities that are already using Aptos. What's been their experience? How reliant are they on staking rewards? I urge the Aptos Foundation and the wider community to actively seek out these voices and listen to their concerns.

What I mean by this is engaging directly with those smaller Aptos validators who are setting up operations in Africa. How supportive are they of the proposed modifications. Or will it just make them go out of business? This would not only overly centralize the network, but reduce the influence of African perspectives in decision-making governance. And do they have a plan in place if their rewards are suddenly cut in half?

Aptos has deep roots in Meta, it was designed for scalability and security. This powerful combination presents a once-in-a-lifetime opportunity to catalyze unprecedented levels of financial inclusion across Africa. That potential will be wasted if we choose short-term efficiency over long-term equity.

These are all tangible, real-world problems Aptos can address. That is only if we take all the necessary steps to make the platform accessible and attractive to African users.

We’ve heard support for the idea of some kind of community validator program to deliver more grants and stake to smaller validators. While this is a positive development, it doesn’t go far enough. We call for a big-picture approach that goes above and beyond to meet the unique demands of African users.

  • Remittances: Lower fees and faster transaction times than traditional methods.
  • Savings: A more stable alternative to volatile local currencies.
  • Micro-lending: Access to capital for entrepreneurs who are excluded from traditional banking systems.
  • Supply Chain Finance: Increased transparency and efficiency in agricultural supply chains.

Both Aptos and Sui each have a TVL of about $1 billion. Aries Markets, a lending protocol, makes up most of that. That’s an incredible statement about what the platform could do. Aptos’ true value goes beyond its TVL. Aptos is based on a groundbreaking blockchain technology called Diem. That’s because it truly empowers the people and communities—in the U.S. and around the world.

A Call for Inclusive Solutions

The proposed staking reward cut is a referendum on the seriousness of our commitment to that vision. Let's not fail the test. So let’s work together to find more inclusive answers. With strong community engagement and participation, Aptos can be a powerful force for good in Africa and around the globe. Let’s connect the dots: reduced staking rewards could mean reduced opportunity, reduced hope, reduced empowerment for a continent on the rise. Is that the legacy we wish to leave behind? I, for one, hope not. We should ensure that Africa’s DeFi future isn’t traded away on the altar of capital efficiency.

Here are a few ideas:

  • A dedicated grant program for African validators: This could help them offset the reduction in staking rewards and continue to contribute to the ecosystem.
  • Educational resources tailored to African users: This could help them understand the benefits of different DeFi activities and make informed decisions about how to allocate their capital.
  • Partnerships with local organizations: This could help to build awareness of Aptos and its potential to transform the African economy.

Aptos has a TVL of nearly $1 billion. Aries Markets, a lending protocol, accounts for a significant portion of that. This is a testament to the platform's potential. But let's not forget that the true value of Aptos lies not just in its TVL, but in its ability to empower individuals and communities around the world.

The proposed staking reward cut is a test of our commitment to that vision. Let's not fail the test. Let's work together to find inclusive solutions that ensure that Aptos remains a force for good in Africa and beyond. Let’s connect the dots: reduced staking rewards could mean reduced opportunity, reduced hope, reduced empowerment for a continent on the rise. Is that the legacy we want to create? I, for one, hope not. We need to make sure Africa's DeFi future isn't sacrificed on the altar of capital efficiency.