What is Aptos Blockchain?
Aptos Labs is coming up with an upcoming blockchain named “Aptos.” The Aptos crypto is based on Web3 and aims to build a safer, scalable, and more reliable layer 1 proof-of-stake blockchain than the one present. The blockchain will be built with a Rust-based programming language called “Move.” The company was founded by former developers of Diem, a Meta blockchain initiative. With respect to transactions per second (TPS) and time to finality (TTF), Aptos is renowned for having a high transaction throughput that is made possible by its modular architecture that has separated consensus and transaction propagation.
Team Information:
In 2021, the key team members of the Diem project, including the two Aptos co-founders, Mo Shaikh (CEO) and Avery Ching (CTO), established Aptos Labs in Palo Alto, California, in the United States. The team consists of proficient developers, researchers, engineers, designers, and strategists.
Investors:
Aptos has 24 investors, including Binance Labs and ParaFi Capital. Aptos has raised a funding of 350$ million. According to a press statement,Jump Crypto and FTX Ventures, the venture capital division of the cryptocurrency exchange FTX, led the $150 million Series A fundraising round for Aptos.
Aptos Tokonomics:
Like many other blockchains, Aptos uses a native coin to make transactions, staking, voting for governance, and network fees possible. Approximately 51% of the tokens on the blockchain will go to the community, followed by about 19% to core contributors and 13.48% to investors. On October 12, 2022, the mainnet was launched. The Aptos token (APT) had a 1 billion token initial total supply on the mainnet. As part of the fraction, APT will have an accuracy of 8 digits, with an Octa serving as the smallest unit.The distribution of stake rewards, which are split between validator operators and stakers, is unrestricted. These incentives depend on staked amounts and validator performance and boost the overall supply of the Aptos network. Every epoch evaluates the maximum reward rate, which starts at 7% annually.
Across all categories, more than 82% of the tokens on the network are staked, and the bulk of these are currently locked according to the aforementioned distribution plan and not available for release. In accordance with the 12-month cliff period for investors, 3/48ths of these tokens will become available starting on the 13th month after the mainnet’s launch and continuing every month through the 18th. Starting on the 19th month following the mainnet launch, 1/48th of the tokens unlock each month after that, until all of them do so on the mainnet launch’s fourth anniversary.
Concluding Thoughts:
The APT, Aptos Blockchain’s native token, launched as planned and promptly lost roughly 50% of its value. A (very) last-minute airdrop announcement added to the confusion, as did pre-earned insider incentives.In addition to technical innovation, marketing has focused on other trusted retail-bait claims such as security and high scalability, with the possibility for over 100k transactions per second (TPS). However, since the announcement of its mainnet’s launch on Monday, on-chain statistics have indicated only 4 TPS, which is lower than the Bitcoin network.
The tokenomics document mentions that insider tokens will be locked for at least a year before being distributed gradually, but it also hints that locked tokens can be staked and that staking incentives won’t be locked. Because there are so many locked tokens (490 million), and because the “maximum payout rate starts at 7%,” insiders, team members, and VCs may have access to nearly 100,000 tokens every day to dump on retail investors using CEXs. A proven and profitable solution for insiders or those with sufficient funds is to dump staking rewards.
Aptos has the same investors and a very comparable value proposition to Solana, so it seems like they are both following the same strategy. Given this and the success Solana has had with technological innovation, it’s difficult to eradicate the impression that these networks were developed solely to milk retail investors.
