Overview
Following community feedback on the Astar Foundation Forward: dApp Staking & Tokenomics post and onchain data analysis, the Astar Foundation is proposing adjustments to Tokenomics 3.0 parameters and a revised dApp Staking model.
These changes address inflation concerns, simplify the user experience, and focus rewards on high-impact projects.
This proposal reduces max yearly inflation from 7% to 5.5%, removes bonus mechanics, moves to a single yearly staking cycle, and caps dApp Staking to 16 projects. Combined with Burndrop, these changes tighten Astar’s token economics significantly.
Current Issues
Based on community input and onchain analysis, four key issues have been identified:
High inflation ceiling. The 7% max yearly inflation creates sustained selling pressure perception.
Free-rider dynamics. With ~69 projects in dApp Staking, inactive projects can extract rewards without meaningful contribution. This creates a perceived value leak and dilutes incentives for active builders.
Complex user experience. The current period structure (Voting + Build & Earn) and bonus mechanics require frequent re-staking and re-voting. Combined with the tiering system and large project count, users face unnecessary friction and confusion.
APR instability. High fixed rewards and low dynamic rewards contributed to unstable APR and rising inflation pressure.
What Changes
Inflation Parameters
The following parameter changes reduce max yearly inflation while rebalancing staker rewards:
| Parameter | Current | Proposed |
|---|---|---|
| Max yearly inflation | 7% | 5.5% |
| Base staker allocation | 10% | 15.8% |
| Adjustable staker allocation | 55% | 63% |
| Bonus allocation | 13.8% | 0% |
| Collator allocation | 3.2% | 3.2% |
| Treasury allocation | 5% | 5% |
| dApp reward allocation | 13% | 13% |
| Decay rate | 100% (inactive) | 99.999992% |
Bonus rewards are eliminated. That allocation moves to base and adjustable staker rewards.
The decay rate activation applies a per-block decay of 0.000008%, enabling the emission reduction mechanism described in the original Tokenomics 3.0 proposal.
Reminder: These figures represent the maximum inflation cap. Due to Astar’s dynamic tokenomics, actual inflation is currently ~2.77%. Lowering the max inflation means real inflation will decrease further.
Emission Impact
Based on current total issuance of 8,622,347,668 ASTR:
Current Model (7% max): ~603.6M ASTR yearly cap
| Component | Allocation | Yearly Emission (Max) |
|---|---|---|
| Collators | 3.2% | ~19.3M ASTR |
| Treasury | 5% | ~30.2M ASTR |
| Base Staker | 10% | ~60.4M ASTR |
| Adjustable Staker | 55% | ~332M ASTR |
| Bonus | 13.8% | ~83.3M ASTR |
| dApps | 13% | ~78.5M ASTR |
Proposed Model (5.5% max): ~474.2M ASTR yearly cap
| Component | Allocation | Yearly Emission (Max) |
|---|---|---|
| Collators | 3.2% | ~15.2M ASTR |
| Treasury | 5% | ~23.7M ASTR |
| Base Staker | 15.8% | ~74.9M ASTR |
| Adjustable Staker | 63% | ~298.8M ASTR |
| Bonus | 0% | 0 ASTR |
| dApps | 13% | ~61.6M ASTR |
Net reduction: ~129.3M ASTR less emitted per year (21.4% reduction in the emission ceiling).
This is the starting point for inflation reduction. The decay factor will continue lowering emissions over time. As a reminder, the decay factor applies an exponential reduction per block. At the ideal 50% staking ratio, emissions decrease to ~81% after year one and ~65% after year two.
Max Supply Convergence
Tokenomics 3.0’s core principle is an asymptotic max supply determined by the emission decay mechanism. With the reduced inflation ceiling:
- Previous target: ~10.5B ASTR
- New target: ~10B ASTR (~9.9B)
Burndrop: Amplifying the Effect
Burndrop is a key initiative for Astar in 2026 and works directly with these tokenomic changes. Under Tokenomics 3.0, any burn event reduces total issuance and lowers the eventual max supply by the same amount.
Example: If max supply converges to ~10B ASTR and 2B ASTR are burned via Burndrop, the effective max supply becomes ~8B ASTR.
Lower inflation ceiling plus active burns equals tighter supply economics.
dApp Staking Model
Remove bonus period and rewards. Setting bonus allocation to 0% eliminates bonus mechanics entirely. No more voting rewards, no bonus period tracking and re-staking.
Move to yearly cycle. Because the inflation system recalculates annually, dApp Staking will align to a single yearly cycle. Users stake once and maintain their position until the next yearly reset, reducing restaking frequency from 3 times per year to once per year.
Cap participation to 16 projects. Rewards distributed across 16 projects instead of ~69 means qualifying projects receive more meaningful allocations. This shifts dApp Staking from broad onboarding to rewarding top-performing projects.
Strengthen entry requirements. Project eligibility requires governance approval (Onchain Governance or ACC).
Implement regular review. Projects that become inactive or stop delivering can be removed. This creates competitive pressure to keep contributing and building.
Simplify tiering in the UI. Tier logic remains in the backend for reward calculation. The frontend experience will be streamlined.
Note: Detailed dApp Staking parameters (expected rewards per project, staking thresholds, tiering modifications) will be shared with the technical implementation post.
This proposal focuses on strategic direction and key changes.
Why This Approach
Parameter-Based Implementation
We’re proposing changes that use configurable parameters already in the current code rather than a complete rework.
This approach is faster and safer. It minimizes breaking changes, reduces audit requirements, and keeps development focused on UI updates and governance execution.
Note: Technical details on code modifications and the new backend approach will be shared in a follow-up post.
Quality Over Volume
The shift: move from broad project participation toward rewarding a limited number of high-impact projects.
This preserves dApp Staking’s core idea while removing accumulated complexity. The result is a system easier to understand, participate in, and trust.
Why These Parameters
Why Inflation Is Necessary
Astar’s inflation is not generic token printing. Each block reward goes to specific beneficiaries:
Collators receive block rewards plus transaction fees to maintain network performance by producing blocks and state transition proofs.
Treasury receives a variable portion for ecosystem grants, and long-term development initiatives.
dApp Staking receives a variable portion split between builder rewards and staker rewards.
The goal is controlled, productive inflation where every emitted token serves a purpose. The decay factor ensures emissions decrease over time as the ecosystem matures.
Why 10% APY Is Competitive
Comparing Astar’s proposed ~10% APY against other L1 networks:
| Network | Staking APR | Staking Rate | Inflation |
|---|---|---|---|
| Ethereum | 2.82% | 29.57% | 1.5% |
| Polkadot | 12.18% | 50.87% | 7.72% |
| Solana | 6.29% | 67.72% | 4.12% |
| Cosmos | 20.35% | 59.01% | 10% |
| Sui | 1.91% | 74.77% | 17.4% |
| Cardano | 2.32% | 57.73% | 2.30% |
| Astar (proposed) | ~10% | 18% | 2.3% actual |
Astar’s position is notable: competitive staking returns with one of the lowest actual inflation rates in the comparison set.
Networks with higher APR often have significantly higher inflation (Cosmos at 10%, Sui at 17.4%). Networks with lower inflation typically offer much lower yields (Ethereum at 2.82%, Cardano at 2.32%).
At ~10% APY with ~2.3% actual inflation, Astar offers strong real yield. The proposed changes maintain attractive staking returns while tightening the inflation ceiling further.
Expected Outcomes
For Tokenomics
Fixed supply model activated. The decay factor activation switches Astar from inflationary tokenomics to a fixed supply model with emissions converging toward a max cap.
Lower inflation ceiling. Max yearly inflation reduced from 7% to 5.5%.
~129M ASTR less emitted yearly. 21.4% reduction in the emission cap.
Tighter supply convergence. Max supply target drops from ~10.5B to ~10B ASTR.
Burndrop amplifies deflation. Burns reduce the max supply cap directly.
For Stakers
Simpler experience. No bonus staking, no voting period mechanics. Stake once per year.
Sustainable APY. Expected APY moves from ~17.5% today to ~10%. Lower, but more predictable.
Predictable rewards. Returns rely on base and adjustable components rather than period-specific incentives.
For Builders
Higher quality set. Rewards concentrate on 16 high-impact projects.
More meaningful allocations. Fewer projects sharing the reward pool means more per qualifying project.
Incentive to keep building. Regular review creates pressure to deliver.
Ecosystem cleanup. Enables removal of dormant projects.
Timeline
Critical deadline: March 7, 2026
- Inflation parameters must be updated before March 7, 2026 to apply for the upcoming yearly cycle.
- dApp Staking model transition targets the next voting cycle starting on March 7, 2026, allowing users to claim existing bonuses before the change.
Governance proposals need to pass with sufficient time for implementation.
Next Steps
- Community discussion and feedback on this proposal (~2 weeks)
- Technical implementation post with code modifications and backend details (next week)
- Finalize parameter values based on community input
- Submit governance referendums for inflation parameter and dApp Staking model changes
- Implementation and UI updates ahead of March 7, 2026 deadline
We welcome feedback on the proposed parameters, eligibility criteria, and transition timeline.
Gaius_sama 
Astar Foundation
