One of the main missions of the Astar Foundation is to create the most favorable conditions to balance the ecosystem of its network. To achieve this balance, it must directly influence its "economic system", as this allows it to ensure that both builders and users can achieve the greatest possible benefit as active participants in the network, while strengthening the ecosystem in the long term.
This is why currently a thread announcing the implementation of a 3.0 tokenomics for Astar has been posted on the Astar forum, to be discussed and then voted on, let's dive in...
Transition from dynamic inflation to a fixed maximum supply model
First, the proposal includes ASTR having a maximum amount of 10.5M, thus avoiding future issuances, which will result in inflation gradually decaying.
Gradual reduction of emissions
Emissions will continue to be adjusted based to Staking dApp, targeting a 50% net rate, but a new decay feature will be included, with a view to reduce inflation but without disrupting what is earmarked for both builders and validators.
Establish protocol-owned liquidity (POL) managed by the Astar Finance Committee (AFC)
Establishing protocol-owned liquidity allows the foundation to direct funds to projects or subsidize solid initiatives within the ecosystem, will make fund management through the Astar Finance Committee (AFC) more functional, preventing funds from going to projects with little or no commitment to the network, and at the same time allows Astar to secure a slot in the Polkadot Relay Chain without relying on collective loans.
Staking Rewards
The APR will fluctuate between 11-14% with a 50% bonus reward on the staking ratio within the next 2 years. Having a stable APR will give more room for stakers to plan the management of their staked assets.
The above is a summary of how Astar intends to maintain the economic balance of the network in the long term, without disrupting the interests of its participants. For more details on the proposal, please click here: Astar's Proposal - Tokenomics 3.0
→ Disclaimer: All opinions are my own, the information provided is educational only and not an invitation to invest. Always do your own research.
Note: This article was written without the use of AI.
Written and Edited by zkVan, Agent of Astar.