Astar Tokenomics 2.0: A Dynamically Adjusted Inflation

Economics
32

Hello everyone,

the PR with dApp staking v3 & Tokenomics 2.0 params for Shiden & Astar is here, under review.

To avoid repeating same information again, I will just focus on short overview of why some parameters were chosen.

In general, we followed suggestions from the report, but adjusted some parts to better suit on-chain logic, and the architecture we wanted to have.

Eras, subperiods, periods, cycles

  • 3 periods per cycle for Astar to avoid making the process to repetitive
    • stakers need to make decisions 3 times per year
    • 4 months gives enough time for devs to show progress with their dApps
  • 6 periods per cycle for Shiden, since it’s Kusama & Shiden, to make it more dynamic
  • treasury & collators reward portions have been kept according to the report

Inflation Params

  • 7% is kept as the max theoretical inflation rate (will be lower in reality, probably less than 6%)
  • for Astar, staker rewards & bonus rewards are adjusted so they can both give together over 11% APR when total staked value is at 50%
    • same as before, when total staked value is below the ideal, APR is higher
    • e.g. when total staked value is 10% of the total supply, APR goes over 30% for loyal stakers
  • dApps rewards are adjusted in such a way that they are no longer excessive but are still substantial enough to motivate developers to get into as high tier as possible

dApp Staking v3

  • Reward retention for Astar is set to 4 periods, which essentially gives user over yearn and a half worth of blocks to claim their rewards before they expire. This is quite excessive considering how current staker rewards work - having to claim all pending rewards before being able to stake again.
  • Minimum locked & staked amounts are being kept same as in v2, with the possibility of reduction in the future.
  • For Astar, unlocking period has been reduced from 10 eras to 9 eras. This goes hand in hand with the Voting subperiod length of 11 eras.
  • Max number of unlocking chunks has been increased to 8 which some users might find useful
  • Tier thresholds & reward distributions have been chosen to foster competition, and not to give away high rewards without attracting substantial stake amount.

Feel free to check it out and leave your comments.

If something is unclear or out of context, please consider that there are dApp staking v3 & Tokenomics 2.0 forum posts, as well as plenty of pages under astar docs. It’s not a light topic, so if you want to understand what’s going on, you need to dig into it.

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