dApp Staking - Maximum Threshold

Hello everyone,

We are working on preparing a new feature related to dApp staking and the threshold system, likely in the next runtime upgrade (exact date TBD), to introduce a fixed maximum and minimum threshold to the tier system. Here’s a quick overview to help you understand changes better.

Background

Since the September 3rd runtime upgrade (v5.43.0), tier thresholds have been calculated dynamically as percentages of total token issuance for tiers 1, 2, and 3. These thresholds are currently defined by a base percentage and a minimum percentage (check messages in this thread).

Problem

Under the current system, tier thresholds are directly influenced by the ASTR token price. As a result, the recent decline in ASTR price has caused thresholds to rise significantly, nearly doubling since the system’s introduction. This has created instability, with many projects shifting tiers despite their staking amounts remaining relatively constant. The lack of predictability has added pressure on project teams, forcing them to divert time and resources toward retaining or increasing stakers rather than focusing on core development and long-term growth. This reactive environment undermines the broader goal of supporting sustainable innovation within the ecosystem.

What’s New

To address this issue, we’re now proposing to introduce a maximum percentage cap to tier thresholds. This is designed to prevent sharp increases caused by fluctuations in the Astar token price, helping to keep tier thresholds within a defined and predictable range. By doing so, project teams can plan with greater confidence, without the constant pressure of thresholds rising indefinitely and potentially causing their projects to be downgraded to a lower tier. Ultimately, this change is intended to create a more stable and supportive environment for builders. You can find the technical implementation in this pull request #1459.

Max Percentage Values (Astar Network)

Here are the suggested maximum possible percentages values delivered with this feature (same values as base percentages):

  • Tier 1: 3.57%
  • Tier 2: 0.89%
  • Tier 3: 0.238%

Based on an 8.4B total token supply (and current market estimate), the projected thresholds are:

  • Tier 1: 300M
  • Tier 2: 75M
  • Tier 3: 20M

Impact

This update could shift dApp tier classifications as thresholds adjust. At the time of writing:

  • 1 dApp will be promoted to Tier 1
  • 1 dApps will be promoted to Tier 2
  • 2 dApps will be promoted to Tier 3

Over time, this should bring more predictability and fairness for builders. That said, we still encourage projects to actively engage their communities and attract new stakers.

All percentages values can still be updated by governance. To maintain the current behavior, the cap can be set at 100% of total issuance.

If you have questions, feel free to reach out. We’re committed to improving the staking experience for all builders and users.

Thank you,
Igor

12 Likes

Thanks for the suggestion, this is definitely something we need to do.
BTW, I thought there was an upper limit to the Tier threshold (as stated in the documentation), but I guess that means it wasn’t actually implemented?

2 Likes

Currently, there’s no upper limit on tier thresholds. The percentages shown in the documentation (and in your screenshot) represent the base and minimum values. With this new feature, we’re proposing to add maximum percentages as well. However, we suggest setting the maximum equal to the base percentage.

For example, Tier 1 would look like this:

  • Tier 1 Threshold (Total Issuance % - Base/Min/Max): Dynamic (3.57% / 2.38% / 3.57%)

The documentation will be updated accordingly to reflect this change once deployed, if approved by governance.

2 Likes

@Igor
thanks for explaining this new feature.
This update was really needed and should give a far greater visibility to the projects.
Happy to see that one of V3 issue will soon be resolved

2 Likes

I was aware that the PR had been merged.
Great work! I think it’s an important update and proposal.

Well thought out, giving stability to dApp Staking projects is important. It is a good solution to establish these percentages, so that projects can better plan their development in economic terms.

Great work, I think it is absolutely a very important change in the dApp staking system

I see, thank you very much.

There was never the upper limit.

The first number is the base percentage, derived from the number of slots on the base price (0.05$). Second number is the minimum percentage.

1 Like