Astar Network has announced significant changes to its tokenomics to reduce inflationary pressures within its ecosystem. On April 18, the company announced a reduction in base staking rewards from 25% to 10%.
Changes in Astar Network's Tokenomics
The reduction in staking rewards aims to stabilize the annual percentage rate for users. Astar Network stated that this ensures that rewards "remain meaningful" without causing excessive inflation.
Inflation Control Mechanisms
In addition to lowering staking rewards, Astar started routing token emissions to determine rewards based on total value locked (TVL). A minimum token emission threshold of 2.5% was also introduced to maintain a sustainable level of issuance and contribute to reward predictability.
New Records and ASTR Token Dynamics
The ASTR token hit a new record low on April 7, dropping to $0.02, which is 93.8% lower than its peak value of $0.42 on January 17, 2022. The token's price has been under pressure since a brief rally in December 2024 when it reached $0.09.
The changes in Astar Network's tokenomics are aimed at stabilizing inflation and ensuring sustainable growth. However, the ASTR token continues to face market price pressures.
