Astar Network has implemented significant changes to its tokenomics to combat inflation as its native token, ASTR, recently hit an all-time low. Effective April 18, the base staking rewards were reduced from 25% to 10%, aimed at stabilizing the annual percentage rate (APR) for users and controlling token inflation. The adjustments aim to lower automatic token issuance and maintain incentives for staking. Unlike fixed-supply models like Bitcoin's, ASTR operates on a dynamic inflation model, leading to potential downward valuation pressure if demand lags behind supply. To mitigate this, Astar has also introduced a new mechanism that routes token emissions towards rewards based on total value locked (TVL), thus enhancing the predictability of decentralized application (DApp) staking APRs. Furthermore, Astar established a minimum token emission threshold of 2.5% to ensure sustainability. These modifications have reportedly reduced Astar's annual inflation rate from 4.86% to 4.32%, alongside a decrease in total tokens emitted per block.

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