Announcement of ASTR Tokenomics Update｜Significant Improvement in Reward System to Curb Inflation

Table of Contents * 1. Astar announces the renewal of its tokenomics model

• 2. Redesigning the reward system for Aster

• 2.1. Reduce the base reward ratio from 25% to 10%
• 2.2. Increase the dApp staking reward rate from 40% to 55%
• 2.3. Set the minimum annual inflation rate at 2.5%

• 3. Strengthening the ecosystem with the decrease in the inflation rate of ASTR

Astar Announces Revamp of Tokenomics Model

The Web3 project “Astar (ASTR)” announced a significant update to its tokenomics, which defines the token reward system and issuance methods, on April 18, 2025.

The previous Astor tokenomics model faced the issue of rewards fluctuating significantly based on network utilization. Additionally, there were concerns about the instability of the staking annual percentage rate (APR) and the annual inflation rate being higher than expected.

The aim of this update is to enhance the predictability and stability of staking rewards, and to link the issuance of tokens to market demand, thereby curbing excessive inflation.

Aster explains that this change is “not only a technical improvement but also an important measure that will strengthen the project’s competitiveness and lead to long-term trust from investors and developers.”

This change has received overwhelming support of 98% through community voting, emphasizing transparency and community-led decision-making.

Aster Redesigns its Reward System

Astar introduced a “variable tokenomics model” in 2023, which adjusts the token issuance based on network conditions. However, as operations continued, challenges such as “significant fluctuations in staking rewards, rising annual inflation rates, and instability of staking rewards for decentralized applications (dApps)” became apparent.

This update aims to address these issues by fundamentally restructuring the token issuance distribution method. The main changes are as follows.

Reduce the base reward rate from 25% to 10%

The percentage of the base reward received by staking participants has been reduced from 25% to 10%.

This change is explained as bringing the network closer to the target staking participation rate of 50%, stabilizing the annual interest rate and preventing excessive increases in rewards.

This aims to suppress the automatic issuance of tokens, maintaining a balance between controlling inflation and providing appropriate staking incentives.

Increase the dApp staking reward rate from 40% to 55%

The distribution ratio of rewards obtained by depositing funds into decentralized applications (dApps) on the network has been raised from 40% to 55%, improving the ability for users to receive stable rewards.

This change is expected to make the annual returns on investments in decentralized applications more predictable, while also helping to stabilize rewards even as the number of staking participants increases. Additionally, the distribution rates for developer rewards, validator rewards, and operational funds remain unchanged.

Set the minimum annual inflation rate to 2.5%

We have introduced a mechanism to ensure that the annual increase rate of tokens does not drop too drastically, by guaranteeing at least an annual issuance of 2.5% of tokens.

This aims to maintain a certain amount of token circulation even during periods of reduced network usage, ensuring the sustainability of the entire ecosystem.

It is also explained that by combining it with the existing transaction fee burn system, it will become easier to forecast the issuance volume.

Strengthening the Ecosystem with the Decline of ASTR’s Inflation Rate

The effects of this update are already evident, with the annual growth rate of the ASTR token decreasing from approximately 4.86% to 4.32%.

In addition, the number of ASTR issued per block has decreased from approximately 154 to 137, resulting in an estimated annual total issuance reduction of about 11%, significantly reducing from approximately 406.58 million to around 360.14 million.

Aster states that this adjustment will achieve “stabilization of user rewards”, “sustainable token issuance that meets demand”, and “stabilization of currency value”.

By linking the reward system to actual demand, it is expected to suppress unnecessary token issuance and contribute to the long-term stabilization of the ecosystem.

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Source: Astar Official Announcement

Writing and Translation: BITTIMES Editorial Department

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