Astar Tokenomics 2.0: Lowering Inflation, Transaction Fees, and Introducing dApp Staking for Growth. Developed with External Experts.
Greetings Astar Community and Friends! We’re excited to introduce Astar Tokenomics 2.0, a sophisticated financial model created to support Astar’s growth and user engagement.
After three months of collaboration with external tokenomics experts, we’ve developed a detailed model to enhance Astar.
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Challenges in Current Tokenomics: Block Rewards and Fees
Astar’s current tokenomics has an annual inflation rate of about 9.5% due to block rewards. Transaction fees vary between Substrate and Ethereum ecosystems, causing inconsistencies. The new model aims to address these issues:
1. High & Fixed Inflation: Block rewards don’t adjust to network usage, leading to inefficiencies.
2. Scalable & Inclusive dApp Staking: The fixed dApp staking reward pool limits growth and inclusivity.
3. Fee Alignment: Native and Ethereum transaction fees need to align for consistency.
4. Treasury & Collator Rewards: These rewards are currently high and require adjustment.
Unveiling Astar Tokenomics 2.0: A New Inflation Approach
The new model introduces dynamic inflation, which will be adjusted annually and is projected to be around 5.8%.
The treasury will receive a fixed 5% of the annual inflation, while collators’ share of inflation will decrease to 3.2%. However, collators will earn more from transaction fees due to a fairer fee structure.
dApp Staking: A New Frontier for Stakers
Stakers will earn rewards based on a more achievable Total Value Locked (TVL) target of 50%.
A tier system in dApp staking, linked to the ASTR token’s average price, ensures fair rewards for all dApps.
With these changes in Astar Tokenomics 2.0, we’re setting a strong foundation for the network’s future growth and stability.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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