Proposing a shift in ASTR token distribution model to a capped supply structure for Astar.
Hear 'Ya! Astar Network Seeks Community Feedback on Tokenomics Shift
Get your thoughts ready, folks! Astar Network, known as Astar in the crypto world, is asking for community input on their latest proposal to shake things up - a shift from a dynamic inflation model to a fixed maximum supply model for their ASTR token.
On May 16, Astar Network dropped the bomb on their official X account, right on their blog post. This proposal marks the third update to Astar's tokenomics, and if all goes well, the ASTR token will start resembling Bitcoin, boasting a hard cap of 21 million BTC.
The idea is simple: no more new ASTR tokens will be minted. Instead, they'll be locking in a maximum number of tokens, just like what you see with Bitcoin. To keep things juicy for stakers, a gradual reduction in emission is also on the cards - maintaining those sweet staking incentives, even with the change in tokenomics.
And listen to this: Astar Network's partnering with Sony to launch a 100M token campaign to fuel ecosystem growth! As of now, ASTR has shot up by 2.7% in the past 24 hours, trading at $0.031. In the last week, it's only seen a 3% gain, but in the past month, it's surged by a mighty 24.7% thanks to the wider crypto rally.
Astar Network's current total supply stands tall at 8.4 billion, with a circulating supply of 7.6 billion. Right now, its maximum supply is infinite, following its dynamic inflation model. But if the project decides to go ahead with a maximum cap on its supply, ASTR will be a scarecrow among cryptos, increasing in value over time, drawing in investors and devs who appreciate a stable, fixed token supply.
However, dumping the dynamic inflation model might mean eliminating staking rewards for holders. But don't worry, Astar Network's assuring us they'll keep staking rewards stable through an exponential decay formula, with rewards maintained at a 50% staking ratio over the next two years.
"Builder rewards will continue, sourced from strategic reserves, ensuring stability during the transition," they say.
Last but not least, prepare for some fireworks as Astar Network gears up for future network upgrades and heavy-hitting partnerships, like the one with Sony's Soneium project. This move may just be the ticket to broader adoption and more integration, giving Astar Network the robust, predictable economic framework it needs for widespread success in the crypto space.
Bonus: Whaddaya Know 'Bout Astar Network's Proposed Shift?
If you wanna learn more about what's happening with the Astar Network, here's the lowdown:
- Controlling Inflation: By moving to a fixed supply model, Astar wants to do away with unchecked token issuance, hopefully curbing inflation and providing a more predictable supply schedule.
- Steady Value: Capping the supply could boost long-term economic value of ASTR by reducing inflationary dilution and building trust among institutional and enterprise participants.
- Predictable Yields: The new emission decay function will control annual inflation more tightly, keeping staking rewards steady even with the shift in tokenomics.
- Network Sustainability: Destroying 50% of network transaction fees and implementing Protocol-Owned Liquidity (POL) will contribute to a sustainable economic environment for ASTR.
- Preparing for the Future: By stabilizing tokenomics, Astar Network is prepping itself for upcoming brand upgrades and fostering interest among institutional investors and enterprises.
- Astar Network is planning to shift from a dynamic inflation model to a fixed maximum supply model for their ASTR token, similar to Bitcoin's hard cap of 21 million.
- To encourage staking, a gradual reduction in emission is also being considered for the ASTR token.
- Astar Network has announced a partnership with Sony to launch a 100M token campaign to fuel ecosystem growth.
- If approved, the total supply of ASTR will be locked at a fixed number, eliminating the possibility of new tokens being minted.
- Astar Network aims to maintain steady staking incentives and yield predictability through an exponential decay formula, even with the change in tokenomics.
