TL;DR
- The drop of ASTR to $0.02 on April 7 led Astar to cut base staking rewards from 25% to 10% to stabilize APR.
- Astar raised the variable portion of staking rewards for dApps from 40% to 55%, ties issuance to TVL, and does not affect developers.
- It set a minimum issuance floor of 2.5%, maintains fee burning, and reduced annual inflation from 4.86% to 4.32%..
The drop of the ASTR token to its all‑time low of $0.02 on April 7 prompted Astar Network to adjust its issuance model.
The network applied a reduction in base staking rewards, lowering its share of emissions from 25% to 10%. This change aims to provide a more stable annual percentage rate as it approaches the target of having 50% of tokens staked, without driving excessive issuance.
Furthermore, the network increased the percentage allocated to variable staking rewards in decentralized applications from 40% to 55%. With this adjustment, the distribution of tokens linked to total value locked becomes more predictable. This change allows participants to obtain consistent returns as the network records more activity in dApps, without affecting developers’ allocations.
Astar introduced a minimum annual issuance threshold of 2.5% to avoid a contraction of supply that could compromise network security. At the same time, it maintains the burning of a portion of transaction fees to offset issuance and reduce inflationary pressure. With these measures, the annual inflation rate fell from 4.86% to 4.32%, token issuance per block was adjusted from 153.95 to 136.67 ASTR, and estimated annual issuance declined from 405 million to 360 million ASTR.
How Does Emission Work on Astar Network?
The dynamic tokenomics model that Astar introduced in 2023 ties ASTR issuance to actual staking participation and overall network activity. This approach ensures that token supply adapts to the level of user commitment. In this way, the network avoids oversupply and maintains incentives aligned with demand.
The proposal that originated these changes received community support through a governance process. The adjustments do not alter allocations directed to the treasury, collators, or developer reward programs. With this update, Astar seeks to reinforce the sustainability of its ecosystem and increase user confidence.
