The blockchain firm Astar Network has implemented changes in its tokenomics to reduce inflationary pressure in its ecosystem.
On April 18, the Astar Network announced This reduced the base staking of the blockchain base to 10% from 25% to hinder the token inflation.
The company said the change promotes a more stable annual percentage rate (APR) for users as staking inches closer to a better ratio. The firm said it ensures that the rewards “remain significant” without causing excessive inflation.
“This change lowers the automatic issuance of the token, reducing the overall inflationary pressure while maintaining a strong incentive for users to promote their astr,” the Astar Network wrote.
Astar network implements inflation-control control mechanisms
Unlike Bitcoin, with a fixed total supply, the AST token operates under a dynamic inflation model without covering the maximum supply of the token. As the blockchain operates, it releases more tokens, increasing the supply.
Having no fixed supply often creates downward pressure on the amount of token over time. This is especially true if the demand for the token does not maintain. To address this, Astar has introduced many new inflation control mechanisms.
In addition to lowering the staking rewards, Astar also began the rural of token releases with a parameter governing the total amount locked (TVL) -based rewards such as decentralized application staking. This means that DAPP staking APRs will be “more unpredictable” over time, which offers stability to stakers.
Astar also introduced a new minimum token emission threshold of 2.5% to ensure it does not exceed a sustainable baseline. In the ongoing burning of the transaction fee, Astar said it would also contribute to the reward.
According to Astar, the changes have dropped the annual inflation rate from 4.86% to 4.32%. It also lowered the total AST token released on each block from 153.95 to 136.67 tokens. It reduces the approximate annual release of the token by 11%, from 405 million to 360 million.
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Astar Token hits all the time low on April 7
Astar Network’s efforts to hinder the token inflation came as the native token recently hit a low time. Coingecko data shows that on April 7, the AST token refused a new low $ 0.02. The price was 93.8% less than its climax three years ago, when it reached $ 0.42 on January 17, 2022.
In December 2024, the token rallied with the rest of the market, hitting a high $ 0.09. Since then, the crypto asset has continued to fall into value before the new low -time time is destroyed.
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