Astar Tokenomics 2.0: A Dynamically Adjusted Inflation

Economics
22

Thanks for your great work( report ). I agree with this proposal.

But, I have just one simple question, HOW ABOUT SHIDEN( $SDN )?

I know Shiden is still 10% inflation. Astar is changed 10 to 9.5 %

This proposal is for Astar ONLY?

Shiden is canary-net for Astar.
( Shiden still have worth of existence or not ? )

I like Shiden too, and now dApp Staking.

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23

Yes you are right, there will be a special tier for UCG:)

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24

Yeah nice! I’m not building but I will be very happy to introduce enthusiast builders to our community.

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25

I found that the describe of current tokenomics link has changed from “https://docs.astar.network/docs/learn/token-economics/inflationary-model/” to “Tokenomics | Astar Docs”, so I’m sharing it. @Maarten

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26

This number was guesstimated by me.

You can also do it by taking current on-chain data (TVL, dApps and their staked amount) and apply it to the formulas & data in the report. E.g. start by considering TVL and how staker reward is calculated. Next step would be to consider current ASTR price to calculate tier params, and put existing dApps into tiers.

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27

Let me just add that this is explained more thoroughly in the existing dApp staking v3 forum post.

There won’t be a separate tier for UCG dApps, but there will be a mechanism to bootstrap dApps into a specific tier for some limited period.

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28

@Dino @Maarten If the number 215.25 is determined by the current on-chain data and staking rate, it does not make sense to set it as the upper limit. If the ideal TVL value is applied, the block reward will increase to 253.08, which is the same as the current block reward.

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29

Please make sure to go over the provided benchmark report, if you haven’t.

Number 215.25 is fairly easy to calculate (even though it has changed since the forum post was made).
You take current total issuance which is ~8.11 billion, take 7%, and divide it by number of blocks in a year. So something like 8.11 * 10^9 * 0.07 / 365 / 24 / 60 / 5.
This is the cap block reward, which would get updated yearly, and inflation is capped at 7% yearly (theoretically, but practically impossible to reach and will always be less due to burn mechanisms).

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30

Just a small update - to keep track of development progress, refer to this issue ticket on Github.

New docs on Astar docs will soon be available, explaining what has been done.

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31

Just a coment here - status of Tokenomics 2.0 rollout to our networks can be found here in Astar Docs - Tokenomics 2.0 | Astar Docs

ETA for upcoming changes on Astar - Hybrid Inflation Model in December and Full Inflation Model alongside dAppStaking v3 (end of Jan / beginning of Feb 2024)

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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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