Emre Yumlu 
Astar Network has made adjustments to its tokenomics to alleviate inflationary pressures within its ecosystem, following a significant drop in the price of its native token to a new all-time low.
What are the Current Stake Rewards Levels on Astar Network?
On April 18, Astar Network announced that it had reduced the blockchain’s base staking rewards from 25% to 10%. This change was implemented to combat token inflation.
The company explained that this adjustment promotes a more stable annual percentage rate (APR) for users, as staking approaches a more optimal ratio. The aim is to ensure that rewards remain “meaningful” without causing excessive inflation.
What Is Astar Token’s Inflation Plan?
Unlike Bitcoin, which has a fixed total supply, the ASTR token operates with a dynamic inflation model and has no cap on its maximum supply. As the blockchain operates, additional tokens are emitted, increasing the supply.
Without a fixed supply, there can be downward pressure on the token’s value over time, especially if demand does not match the increase in supply. To address this, Astar has introduced new measures to control inflation.
New Measures Alongside Staking Reward Reduction
In addition to lowering staking rewards, Astar has started routing token emissions into a parameter that governs TVL-based rewards such as DApp staking. This ensures that DApp staking APRs will become more “predictable” over time, providing more stability for stakers.
Astar has also set a new minimum token emission threshold of 2.5% to ensure it doesn’t exceed a sustainable baseline. Combined with ongoing transaction fee burning, Astar expects this to contribute to the predictability of rewards.
The company stated that these changes have reduced its annual inflation rate from 4.86% to 4.32%. Additionally, the total ASTR tokens emitted per block has been reduced from 153.95 to 136.67 tokens, lowering the token’s annual emissions by 11%, from 405 million tokens to 360 million.
Astar Token Hits New Low
Astar Network’s efforts to reduce token inflation come after its native token ASTR hit a new all-time low. According to CoinGecko data, ASTR token fell to $0.02 on April 7, marking a 93.8% decrease from its peak price of $0.42 on January 17, 2022.
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