ASTR's Role within the Soneium Ecosystem

Motivation

Following the announcement of the transition from Astar zkEVM to Soneium, one of the most frequently asked questions from the community has been about the future direction of Astar and the role of the ASTR token. In this post, we would like to outline the proposed direction and invite the community to engage in an open discussion around it.

Introduction: ASTR’s Utility on Soneium

This thread is being initiated by the Astar Foundation to open up discussions with the Astar Network community and core contributors. Please note that nothing in this proposal is finalized, and any information circulating outside of this forum based on this thread should be considered speculative or false. We welcome your feedback and collaboration as we explore potential paths forward.

As Startale launches into the groundbreaking era of Soneium to ‘Go Mainstream’, ASTR’s pivotal role within this promising ecosystem is undeniable. Our recent WebX and Token2049 events showcased an overwhelming surge of support from builders, all eager to integrate ASTR into their Soneium-based projects. This resounding endorsement from the developer community not only validates ASTR’s immense potential but also paves the way for an exceptionally promising future.



Use Cases for ASTR on Soneium

The following chapter will explain some of the use cases Astar Foundation has already discussed with key partners, ensuring that ASTR is a cornerstone of the ecosystem:

ASTR as an ecosystem asset: Astar Foundation aims to establish the ASTR token as a core ecosystem token among multiple chains as it can encourage deeper collaboration between builders, users, and the wider community. By aligning the interests of multiple stakeholders—developers, users, investors, and liquidity providers—ASTR aims to become one of the symbols of participation and value creation within the Soneium ecosystem.

ASTR as a DeFi asset: will play a crucial role as a primary routing asset in the Soneium decentralized finance landscape. By ensuring robust liquidity in ASTR pairs with key assets like WBTC, ETH, USDC, and LST/LRTs, ASTR will emerge as one of the most important assets in Soneium’s DeFi protocols. This includes expanding its utility as collateral for stablecoins, perpetual, and lending markets, as well as enhancing its role in broader DeFi operations.

ASTR as a Currency in Consumer Applications: ASTR and stablecoins using ASTR as collateral will be positioned as a key pricing asset across various applications within the Soneium ecosystem. Startale has already kicked off the implementation of these functions. By integrating ASTR into these use cases, we aim to strengthen its pricing power and make it a foundational token for transactions and value exchange throughout the ecosystem.

ASTR in Enhancing Soneium Infrastructure Security: In partnership with key players, we are exploring ASTR as a key asset for bolstering the security of core network infrastructures, for example, LayerZero’s decentralized validator networks (DVN). Or AVS on EigenLayer. This will add an extra layer of security to Soneium’s critical interop infra, increasing the token’s utility in maintaining network reliability and security.

These examples are just the beginning. As the ecosystem grows, we anticipate even more innovative use cases for ASTR, which will contribute to Soneium’s success.


Innovative Incentive Programs

Recognizing the challenges associated with buybacks, particularly from our experience with Astar zkEVM, we are exploring alternative strategies focusing on long-term value creation for ASTR. One such strategy is the introduction of an Astar Foundation-specific campaign on Astar Network and on Soneium testnet.

In coming weeks, Astar Foundation is launching the LFGM (Let’s Fearlessly Go Mainstream) campaign in partnership with some of the most innovative dApp teams building on Astar and Soneium. If you’re curious about how dApps can use ASTR to unlock real value, the various utilities of ASTR, and future benefits from holding, then this campaign is for you.

The LFGM campaign is a multi-dApp experience that showcases top-tier projects—including long-time Astar builders and new arrivals from Soneium. These projects are all utility-driven teams and have been carefully selected to demonstrate how they utilize the Astar native token, ASTR, on Soneium - to push the space forward when it comes to decentralized applications. A campaign where anyone can participate, from web3 users to general users who want to learn more about Astar’s usages in the Soneium ecosystem.

More information about this campaign will be released closer to the launch. The Astar Foundation has completely funded and organized it.

Soneium’s Ecosystem Asset:

Soneium is an Ethereum layer 2 which doesn’t have a native token. Therefore, we will establish ASTR as one of the key ecosystem assets in the ecosystem. This strategic positioning will undoubtedly catalyze its utility and value, cementing ASTR’s status as an indispensable force driving the ecosystem’s expansion and success.



Strengthening dApp Staking and Ecosystem Growth

dApp staking is a fundamental feature of the Astar Network, and while Soneium will not have a direct equivalent, projects will be able to leverage Astar’s dApp staking capabilities through third-party messaging bridges. This integration is already in progress, with two projects committed to using this feature on Soneium, and more are expected to join. When users engage in dApp staking within the Soneium ecosystem, they will actually be interacting with the Astar Network through these bridges, ensuring seamless functionality across both platforms.

Cleansing the dApp Staking Platform:

To ensure the continued success and relevance of ASTR, Maarten (Head of Astar Foundation) wants to propose a proposal to undertake a thorough review of the dApp staking projects. Only those that bring real value to ASTR will remain part of this unique staking mechanism. This “house cleaning” will involve strong due diligence and proposals to delist underperforming projects, ensuring that ASTR continues to thrive within the ecosystem.

Since the Astar Foundation must remain neutral, we will establish a ‘DAO Collective’ to spearhead this initiative. To form this collective, we will launch an open application process where anyone can apply to participate in this first task. All applications will be reviewed by a selection committee organized by the Astar Foundation, and this process will be conducted transparently on the forum. Over time, this collective will evolve into the Astar Network DAO Collective, playing a crucial role in strengthening Astar’s position in the market. The Foundation envisions this collective becoming a key decision-maker in the upcoming Astar Gov1, overseeing critical areas such as dApp staking, the DAO Treasury, and the forthcoming Ecosystem Fund.



Commitment to Enhanced Communication

We understand the community’s call for clearer communication and are committed to improving this aspect. While more comprehensive communication channels are being developed, we plan to share additional details starting from this forum post. Our goal is to build stronger lines of communication between the Astar Foundation and the community, ensuring transparency and collaboration as we move forward.



Conclusion: A Call to Action

Our strategy is to strongly align with Soneium and its ecosystem. We’re excited about ASTR’s new role, and as such, we want to hear from our community members. We encourage the community to engage in upcoming discussions, start reviewing projects in dApp Staking for potential delisting, participate in the proposed incentive programs, and stay informed as we roll out new initiatives. Together, we can ensure that ASTR not only retains its value but also grows and becomes a key asset on Soneium as the new chain matures and is widely adopted.

The future is bright for ASTR, and with your continued support, we’re confident that it will remain a key asset in this exciting new chapter. Stay tuned for more updates, and let’s continue to build a stronger, more vibrant ecosystem together.

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Thank you for updating us

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Great initiative! It’s also very good to hear about the integration of ASTR as collateral for stablecoins, which will create demand and reduce the possible supply side (circulation) while generating demand for ASTR.

Regarding dApp staking on the Soneium L2, Soneium dapps will have their UI where users can stake ASTR on the website/UI, and the same amount will be staked on Astar L1 (Polkadot side) as well, using CCIP and Layer Zero?

In your opinion, what will be the criteria for being part of the Collective DAO? And when it comes to delisting a project, will we consider factors such as activity, users, social media engagement, and trading volume (specific KPIs)?

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Thank you Maarten for clarifying all the questions from the community, I think this is super helpful! Glad to hear that ASTR will play an important role on Soneium and all of the utitilities. I am super excited about the innovative incentive programs that bring all projects together in Astar and long-ter value creation for ASTR!
I am curious about the dApp staking “house cleaning”, right now we have different tiers, what criteria will be used to assess those dApp (same rule for all dApp or different for different tiers?), and I am also wondering if we can provide some support for underperforming projects before delisting, for example, mentoring or technical support might help struggling projects turn things around before they are removed, it would be nice to have a good communication with those projects and community.

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I can see the following scenarios:

  • LST projects on Astar Network, using LayerZero as a bridge to bring their LST asset to Soneium ecosystem to be used in different dApps.
  • LST projects launched on Soneium that utilize ASTR liquidity that has been brought in through Chainlink CCIP and communicate with dApp Staking through: LayerZero or CCIP
  • and I’m sure more scenarios will be thought about.

From my point of view to be part of this collective DAO, I see two main important requirements:

  • Aligned with ASTR mission
  • Familiar with its ecosystem

I prefer not to set any criteria by myself for delisting projects. I see it as one of the first tasks by the DAO collective.

Let me know if something isn’t clear.

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Similar as I stated above, I think setting the criteria will be the first task of the collective and also to communicate this transparently with the Astar community.

Your idea about mentoring is always something that smaller projects would be very grateful to have.

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Thank you so much Maarten for the quick reply! I will also share with the community and any more feedback from community here in the future!

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Thanks, Maarten! I think it would be interesting to evaluate what the reasons for delisting would be, using the DAO to gather more voices and opinions on the matter.

In the DAO system, will it be possible to delegate tokens, similar to Polkadot governance, and the users that already staked on dapp staking will be able to delegate or vote with their ASTR?

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Hello Maarten :smile:
Thank you for your valuable proposal and call to action.

In the use case for Soneium, I did not fully understand the part about “ASTR in Enhancing Soneium Infrastructure Security.” It is possible that my understanding of the security-related infrastructure tools mentioned is insufficient. To deepen my understanding, could you kindly explain this part using specific examples or metaphors? Alternatively, if you could highlight the existing challenges that need to be addressed to enhance security, it would help me understand better.

Because I believe that the perspective of enhancing security is simply effective as a convincing factor for utilizing blockchain from a corporate viewpoint.

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About Cleansing the dApp Staking Platform

I believe that maintaining a certain level of error is important for overall innovation in the ecosystem’s development.

There must be room for projects that are not good enough in order to foster the development of better ones.

Therefore, setting this standard will require a lot of discussion.

However, DApp Staking itself is already a form of voting behavior. Poorly performing DApps won’t receive much support, so perhaps simply increasing the voting frequency of DApp Staking could achieve some of the desired cleaning effect.

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Thank you for sharing!

I’m concerned about the dApp Staking DAO Collective being reviewed by an election committee organized by the Astar Foundation. It will be conducted transparently, but I’m concerned that in some cases it may be seen as a centralized way of speaking for the Astar Foundation.

What process do you plan to follow?

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By the way, I heard before that you were going to make a proposal on whether or not dApps on Soneium should be subject to dApp Staking, can I assume that this is separate from this case?

And while we’re off topic, there was an earlier post about starting an incentive program at the end of September.
https://x.com/henskensm/status/1828651984502862068
Although it did not originate from Astar’s official account, there were some reposts from the official account and some in the community were disappointed that this post had not been started.
Is the incentive program in this post the program in this proposal?

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As a project currently listed on dapp staking with prior plans to launch on zkevm and now fully on Soneium, its nice to see this discussion started.

To us, we would like to have ASTR within our product somehow as our roots are borne in Astar, and we also feel obligated to do so as we are benefitting from the dapp staking program and previously the UCG program. However its a little unclear to us how to do so as now we are natively on Soneium. Perhaps with this LFGM campaign we can see the implementation from other projects for inspiration.

I’m interested in exploring how to more deeply implement ASTR in our consumer app, beyond just a currency. Perhaps we can list it as a point program, so ASTR holders get benefits? We need to think about it a bit more.

Until then, I’m in support of the house cleaning of dapp staking, even though frankly, this may result in Metadomo being delisted at the current stage. Projects benefiting from dapp staking should have ASTR integrated into their product. After all, projects earning ASTR from dapp staking must sell it in order to realize their earnings to USD, to fund their project development. This sell pressure without balance on buy pressure through ASTR integration in the dapp is not good for Astar as a whole.

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Hi @tksarah

I intentionally stayed a little vague in that area because we are talking with several partners related to this topic but I’m not yet able to disclose any names. It’s added here because it’s one of the area’s we are working on to bring value in the ASTR token.

The moment those deals are closed with service agreements in place, I’m able to share more information. Let me try to create an overview next week when I plan to post an updated post related to this topic.

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You bring up an important topic because that’s not the direction we want to take to be seen as a centralized way of speaking for the Astar Foundation. This forum post is great way to start the discussions related to this as well.

The meaning of this first post is to create some structure; now, with open discussions, we aim to come to a much better structure to enhance our path forward.

@you425 what would be from your point of view key requirements or actions to not go towards this message of centralized way of speaking.

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It’s related. With the upcoming LFGM campaign, we first need to showcase the value of ASTR in those ecosystem projects on Soneium that adopt the ASTR token as part of their product. When this is showcased people will have a better understanding and more trust in having those projects available in our dApp Staking.

The main reason is that I only want to see projects getting support through dApp Staking for those who bring value towards ASTR when they are on Soneium. Astar Network itself is different in this case because they are building their product on top of the network that utilize ASTR as gas fee.

Yes correct, because of some delays building up this program we were not able to meet the target of end of September. The incentive program is still planned and will start from this month. More details will be shared in upcoming updates in this thread.

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Thanks for the reply!

I believe that both transparency and fairness are crucial. When the election committee selects members of the DAO Collective, it is essential to clearly disclose the criteria used for their selection.

It might also be a good idea to implement a phased selection system. For example, the community could be involved in narrowing down the candidates, and then the election committee would make the final selection. This approach could ensure the fairness of the member selection process.

On the other hand, there’s also the option where the election committee narrows down the candidates, and the community makes the final choice.

Yes, I agree that it makes sense to only target projects that bring value to ASTR when considering making dApps on Soneium eligible for dApp Staking.

What I’m curious about is whether the proposal to include such dApps in dApp Staking will be made separately from this campaign.

Thank you, I understand. While the delay is understandable, and it wasn’t an announcement made from the official Astar account, it would still be helpful if you could be more cautious with social media posts to avoid confusion within the community.

I look forward to further updates.

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Hi @Maarten ,
Thank you for your sincere response.
I understand the background and circumstances.
I look forward to future updates :smile:

Hi @Maarten,
Do you have any plans for the Astar Foundation to propose allowing projects on Soneium to apply for dApp Staking?

To utilize dApp Staking, a significant amount of $ASTR needs to be collected and staked.
Therefore, I believe that allowing projects on Soneium to participate in dApp Staking would contribute to the enhancement of $ASTR’s value.

Thanks for this clarifying post.
I believe that by carrying forward all these points mentioned in the post, ASTR is truly at the center of SONEIUM and we must work hard to ensure that everything is perfect on both the integration and user experience sides.

  1. Making (indirect) staking possible from Soneium (through bridging and direct staking on ASTAR L1) Is a very important thing that must be worked out down to the smallest detail to create an easy and immediate user experience, without the user being aware of all the mechanisms behind it creating a unique totally synchronized SONEIUM / ASTAR environment.
  2. I find a really interesting point with very high potential regarding the improvement of Soneium security via $ASTR. I have seen great interest from users on this topic, because it would link $ASTR even more to SONEIUM as the chain’s utility token. I would really like this topic to be explored better and explained well (when more can be said) because it is a great narrative for the token and give a lot of importance to it.
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