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Astar’s Grand Plan to Tame the Inflation Beast…or Not?

BBG News

Ah, dear readers, behold the grand spectacle of blockchain economics! In the latest act, Astar Network—oh, how noble they are—has decided to “reduce” the ever-dreaded inflationary pressure in their ecosystem. Yes, you heard it right, they’ve lowered the base staking rewards. What a brave and bold move! 🎭

On this fine day, April 18, Astar Network announced that it’s slashing the blockchain’s base staking rewards from a dazzling 25% to a humble 10%. Truly, what is a mere 15% reduction to save the world from the ominous shadow of inflation? Astar assures us, with the poise of a Shakespearean hero, that this change will bring “more stability” to the annual percentage rate (APR). 🧐 Yes, stability—such a charming word. It promises a more balanced, less chaotic world of staking. How wonderful!

“Worry not, dear stakers,” says Astar, “for this reduction ensures rewards will remain *meaningful*—oh yes, meaningful indeed—without sending us into an inflationary spiral!” In other words, they are *generously* offering less, but don’t worry, it still counts as a reward. Bravo! 👏

Astar Network Rolls Out Its “Inflation-Busting” Measures!

Now, unlike Bitcoin—poor, simple Bitcoin, which is constrained by a fixed supply—Astar’s token, the illustrious ASTR, operates under the *ever-evolving* dynamic inflation model. Ah, how dynamic it is, with no cap in sight! More tokens are emitted as the blockchain hums along, growing the supply, and with that, the potential downward pressure on the value of the token. How splendid! But don’t fret, Astar has a plan—a rather complicated one, mind you—to keep this madness in check. 🙄

Among these efforts, Astar is kindly routing token emissions into a “parameter” that governs total value locked (TVL)-based rewards, such as decentralized application staking. How elegantly technical! But fear not, this simply means that DApp staking APRs will become “more predictable” over time. Predictable, like a good old French farce where you know exactly what’s coming, and yet you can’t help but watch. 🎬

In their infinite wisdom, Astar has also introduced a new minimum token emission threshold of 2.5%. But don’t worry, they assure us this will ensure they don’t exceed a “sustainable” baseline. And as if that weren’t enough, they’ll continue burning transaction fees—oh, the drama of it all—to maintain reward predictability. 🌟

According to Astar’s own proclamations, these changes have already reduced their annual inflation rate from 4.86% to 4.32%. A modest victory, yes? And their token emissions per block have been reduced, as if by magic, from 153.95 tokens to a mere 136.67 tokens. This brings their estimated annual emissions down by 11%, from 405 million to 360 million tokens. Truly, a masterpiece of financial engineering! 🎩

Astar Token’s Tragic Fall: A Tale of Woe

But alas, dear audience, the plot thickens. Despite all these valiant efforts, Astar’s native token has recently hit an *all-time low*. On April 7, the poor ASTR token plummeted to a heartbreaking $0.02. A tragic 93.8% decline from its glorious peak of $0.42 back in January 2022. *Alas, poor ASTR, we knew you well!* 😢

In a brief flash of optimism, the token rallied in December 2024, reaching a high of $0.09. Yet, like the best tragedies, it quickly resumed its downward descent. The token has since continued its melancholic journey to the depths, where it now finds itself languishing in new all-time low territory. Oh, what a fate! 🥀

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2025-04-18 14:41

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