Astar Network has announced a reduction in its base staking rewards from 25% to 10% as part of its strategy to combat inflation within its ecosystem. This move aims to stabilize the annual percentage rate (APR) for stakeholders while ensuring that rewards remain meaningful without exacerbating inflationary pressures. With a dynamic inflation model, the ASTR token issues new tokens without a fixed supply cap, which can lead to decreased token value if demand does not keep pace with supply. To mitigate this issue, Astar is implementing several inflation-control measures, including adjusting staking rewards and introducing a minimum token emission threshold of 2.5%. This recent adjustment has effectively lowered Astar's annual inflation rate from 4.86% to 4.32%, while the total ASTR tokens emitted per block have dropped from 153.95 to 136.67. This change comes after the ASTR token experienced a significant drop in value, reaching a new all-time low of $0.02 on April 7, 2025, marking a substantial decline from its peak price of $0.42 in January 2022.

Source 🔗