# Could ASTAR Become Deflationary with ZK-EVM and DApp Staking V3 Implementations?
**URL:** https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959
**Category:** Economics
**Created:** [January 23, 2024, 11:47am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959 "2024-01-23T11:47:56Z")
**Posts on this page:** 17
**Page:** 1
### Author:  [@aleks](https://forum.astar.network/u/aleks)
#### Post date: [January 23, 2024, 11:47am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/1 "2024-01-23T11:47:56Z")
Hey everyone,
I’ve been considering the possibility of ASTAR turning into a deflationary token upon the launch of the new features. This involves integrating buyback and burn mechanisms from sequencer revenue, along with the upcoming release of the DApp staking v3 burn feature. To test this, I’ve created an [Excel Sheet](https://docs.google.com/spreadsheets/d/15w20VB9RrO-UzJxEqlZbeyNS9pLY6x78FqYsUmGWo6Y/edit?usp=sharing) to evaluate the impact of these burn mechanisms.
The primary objective was to determine the sequencer’s required earnings for ASTAR to achieve a year with zero inflation (sequencer bought and burned tokens = inflation tokens - DApp staking burn - burned tokens from fees yearly - TVL dependant burn (not minting)).
Here are the key assumptions:
- DApp staking burn: Utilized data from the final tokenomics v2 auditing report - [LINK](https://drive.google.com/file/d/1ojs4EyH4vzZTdQAsnx68nb2manDUtrh2/view)
- Burned tokens from fees yearly: 20% of the current daily TX fee values from Subscan.
- Current ASTAR TVL percentage of total supply
In the first experiment, I calculated the needed zkevm sequencer earning for deflation - **32,485.29 ETH**. Comparing it to other chains listed in the sheet, it’s approximately 2.5 times more than the largest one currently - Arbitrum. This suggests that it may not be entirely feasible for ASTAR to become deflationary, at least at this stage and level of abstraction.
However, in the second experiment, I used the sequencer earnings of Base L2 (which could be similar to ASTAR ZK-EVM) and attempted to calculate the inflation rate with the previously mentioned assumptions. We can anticipate an inflation reduction of **31.66%** , which sets the inflation to - **4.62%**. This represents a substantial decrease that could positively impact several ecosystem components.
I’d love to hear your thoughts on this. Feel free to explore the model and share your findings.
Cheers!
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### Author:  [@Leo](https://forum.astar.network/u/Leo)
#### Post date: [January 24, 2024, 10:05pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/2 "2024-01-24T22:05:43Z")
With the update in the Dapp staking mechanism, thanks to the tier system, many projects will have a certain amount of reward. As the manager of the 3rd largest project in DApp staking, to be honest, I think the reward mechanism is a bit too much according to the ASTR price. With the current adjustment, while there will be no decrease in the dollar-based reward amount of the current dapps, in the future, as the value of ASTR increases, this number will be brought within a certain scale and this will make sense.
Secondly, I hope that with the increased use of Astar ZkEvm, the connection of other venture companies in Japan with web3 will increase and become more collective.
Thank you for your research; it has been a truly valuable report. I will share your research in my article tomorrow, citing you as a source.
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### Author:  [@MrKarahanli-Emre](https://forum.astar.network/u/MrKarahanli-Emre)
#### Post date: [January 25, 2024, 8:37am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/3 "2024-01-25T08:37:47Z")
That’s a pretty good assessment. Your comparison with the current positions of potential competitors is quite good. I am sure that soon people whose speciality is cryptography inflationist will meet under this article. Your post has been sent to our messenger group.
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### Author:  [@aleks](https://forum.astar.network/u/aleks)
#### Post date: [January 25, 2024, 3:26pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/4 "2024-01-25T15:26:33Z")
Thank you
> [@Leo](#):
>
> Thank you for your research; it has been a truly valuable report. I will share your research in my article tomorrow, citing you as a source.
Make sure to post the research here so I don’t miss it. I also invite you all to test the model out with various new inputs, test your scenarios or add new features. We are more than open to feedback.
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### Author:  [@Gaius\_sama](https://forum.astar.network/u/Gaius_sama)
#### Post date: [January 29, 2024, 11:52am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/5 "2024-01-29T11:52:13Z")
Hi @aleks,
It’s a good initiative to start making projections for the new ASTR tokenomic with all the changes coming to our network with dApp Staking V3 and the launch of Astar zkEVM. The numbers are already promising, but these are assumptions because you’re basing your calculations on several parameters that have yet to be determined:
- DApp staking burn: the final parameters for Astar are still being researched and will be shared with the community once decided.
- Sequencer earning: these parameters are still being researched and need to be defined.
- Tokens burned from annual fees. 80% of tx fees are burned with the new tokenomic and we expect to see tx increase on the native Astar network with the launch of zkEVM as we will attract more users and therefore more stakers into dApp Staking which is on the Astar substrate.
I’d be interested to see the same calculation and research once all the parameters have been decided, shared and implemented, which will give more accurate results.
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### Author:  [@Juminstock](https://forum.astar.network/u/Juminstock)
#### Post date: [February 8, 2024, 4:54pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/6 "2024-02-08T16:54:57Z")
In spite of the data presented by G, I find the proposed model very interesting
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### Author:  [@Leo](https://forum.astar.network/u/Leo)
#### Post date: [February 12, 2024, 6:58pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/7 "2024-02-12T18:58:44Z")
In recent weeks, I created content that also includes your research. Thank you:
>
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### Author:  [@BoomBLB](https://forum.astar.network/u/BoomBLB)
#### Post date: [March 31, 2024, 2:20am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/8 "2024-03-31T02:20:23Z")
Thanks you a lot for your proposal. It was vey useful initiatives to consider how to improve this in some ways =)
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### Author:  [@pithecus](https://forum.astar.network/u/pithecus)
#### Post date: [March 31, 2024, 5:28am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/9 "2024-03-31T05:28:33Z")
Hi aleks, this is indeed a good observation and would be a good topic to follow. Just curious to see what the latest percentage with other parameters mentioned to be considered as deflation-related factors and after the dApp staking v3, 🙂
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### Author:  [@Sequaja](https://forum.astar.network/u/Sequaja)
#### Post date: [March 31, 2024, 6:38pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/11 "2024-03-31T18:38:42Z")
Thanks for the info @aleks and @Gaius_sama. Really intresting information. Looking forward to when the final parameters have been researched and shared with the community. And really intrested about the buy back of $ASTR via earnings through zkEVM.
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### Author:  [@defiguy](https://forum.astar.network/u/defiguy)
#### Post date: [March 31, 2024, 8:23pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/12 "2024-03-31T20:23:45Z")
I understand that crypto always moves with its narrative. Although Astar adopts a very conservative and institutional approach, which I understand is for regulatory reasons, I would like to begin showcasing to the retail user base and crypto influencers that Astar can be deflationary and that inflation has already been drastically reduced. This is important because there is a common misconception that Astar is very inflationary, which can be detrimental to our ecosystem as an investment.
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### Author:  [@Kabrine](https://forum.astar.network/u/Kabrine)
#### Post date: [April 3, 2024, 2:57am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/13 "2024-04-03T02:57:06Z")
I agree with @defiguy who, by the way, has done excellent work on his channel sharing everything possible about the ecosystem, even more so while the community is waiting for buybacks and burns, countless questions are asked weekly regarding the topic, information that will better guide the vision, give credibility and thus bring more attention.
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### Author:  [@minia](https://forum.astar.network/u/minia)
#### Post date: [May 25, 2024, 2:53am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/16 "2024-05-25T02:53:49Z")
I don’t speak English well.
be writing through a translator
Please understand me.
Are you burning astr well with the Ethereum fee?
I don’t think there’s a future for astr unless it’s enough to cause deflation…
Every killer dab will try to use zk
The astr coin will gradually lose its use
If so, the astr coin should be deflationary only by incineration
If the price of astr is not maintained, all of astr’s systems will collapse
Nodes, incubations, staking, etc. It doesn’t mean anything
I’m not talking about the price
Don’t get me wrong
The system will be maintained only when the price is maintained
This is a serious problem for astr
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### Author:  [@pitcoin777](https://forum.astar.network/u/pitcoin777)
#### Post date: [May 26, 2024, 4:15pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/17 "2024-05-26T16:15:25Z")
I don’t like the idea of a deflationary token… this means less token in circulation and if the token demand is uptrend and the network activity goes parabolic the same will occur with fees for user, developers, dapps brining us the ETHEREUM vibe.
I support inflation reducing which I believe what will happen with zkEVM and dApp staking v3 implementation.
Also, Astar is selling its tech and SDK, not it’s token. - that’s the approach the Astar Foundation have to onboard the next billion of users… people using Astar Network without knowing they are using crypto or blockchain
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### Author:  [@Leo](https://forum.astar.network/u/Leo)
#### Post date: [May 31, 2024, 6:50pm UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/18 "2024-05-31T18:50:23Z")
I definitely support this. The main reason is that Firolauss AI alone has had over 150,000 transactions in the last month.
This is just the earliest stage.
With Astar Network’s Account Abstraction infrastructure hosting 50-100 applications, the network’s transaction volume will be sufficient. The important point here is to ensure that projects choose the Astar Network.
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### Author:  [@pithecus](https://forum.astar.network/u/pithecus)
#### Post date: [June 1, 2024, 3:30am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/19 "2024-06-01T03:30:51Z")
I believe you are already aware about this dashboard update on the portal. There is now a panel showing the current inflation rate, which is now 2.6%. It would be great if you can update your simulation with taking this data into account 🙂
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### Author:  [@pitcoin777](https://forum.astar.network/u/pitcoin777)
#### Post date: [November 29, 2024, 11:21am UTC](https://forum.astar.network/t/could-astar-become-deflationary-with-zk-evm-and-dapp-staking-v3-implementations/5959/20 "2024-11-29T11:21:30Z")
> [@Update to the Inflation Chart on Astar Portal – Transparency Matters!](https://forum.astar.network/t/update-to-the-inflation-chart-on-astar-portal-transparency-matters/7512):
>
> Hello Astar! We’re thrilled to share an important technical update for the Astar Portal. Our frontend team has addressed the inflation chart issue that many of you brought to our attention. As always, your feedback drives our improvements, and ensuring clarity in Astar’s ecosystem is our top priority. Let’s delve into the specifics of this fix and explore the current inflation dynamics of ASTR! The Update With the release of version v0.0.73 of Astar apps, the Astar Portal Dashboard now prov…