Astar Reduces Base Staking Rewards to Ease Inflation Pressure

Astar Network Cuts Staking Rewards Amid Soaring Inflation Concerns

In a decisive move to combat inflationary pressures within its ecosystem, Astar Network has adjusted its tokenomics by reducing its base staking rewards from 25% to 10%, the project announced on April 18. The changes come shortly after the platform’s native token, ASTR, plummeted to a new all-time low.

The adjustment is part of a broader initiative to enhance long-term sustainability and reward predictability for stakers, while also reducing excessive token issuance that could further erode token value.

“This change lowers automatic token issuance, reducing overall inflationary pressure while maintaining strong incentives for users to stake their ASTR,” the Astar team noted.

Inflation Control for a Dynamic Supply Token

Unlike Bitcoin, which has a hard-capped supply of 21 million coins, ASTR operates on a dynamic inflation model, meaning there’s no upper limit to the total number of tokens that can exist. While this can fuel growth in early stages, unchecked inflation can suppress price performance if demand doesn’t keep pace.

To address this, Astar has introduced multiple inflation-control mechanisms, including:Astar Network highlights key changes to its tokenomics. Source: Astar Network

Routing token emissions into decentralized application (DApp) staking pools based on total value locked (TVL), creating a more stable and predictable annual percentage rate (APR).

Introducing a minimum token emission floor of 2.5%, ensuring emisions don’t dip below a sustainable baseline.

Continuing transaction fee burning, helping to balance out token supply growth.

These updates are already having an impact. Astar reports its annual inflation rate has dropped from 4.86% to 4.32%, while emissions per block have decreased from 153.95 to 136.67 ASTR. This translates to a projected 11% annual reduction in emissions, cutting total output from 405 million to 360 million tokens per year.

Astar Network’s 1-year price chart. Source: CoinGecko

ASTR Hits New Low Amid Broader Market Decline

The timing of these changes is critical. On April 7, the ASTR token hit a new all-time low of $0.02, according to data from CoinGecko — a staggering 93.8% decline from its all-time high of $0.42 recorded on January 17, 2022.

Although the token saw a short-lived rebound in December 2024, reaching $0.09 amid a broader market rally, it has since experienced steady declines, culminating in this latest price trough.

Conclusion

Astar Network’s updated tokenomics reflect a growing awareness of the need for sustainable ecosystem design in the evolving crypto landscape. By reducing staking rewards and tightening control over token issuance, Astar aims to strike a balance between incentivizing participation and preserving long-term token value. Whether these measures will restore investor confidence and price stability remains to be seen, but they mark a proactive step in addressing inflationary concerns head-on.