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 provides clearer and more accurate insights into ASTR’s tokenomics and inflation rates. This enhancement reinforces trust and transparency for ASTR investors and holders, giving everyone a clearer picture of the ecosystem’s economy.
Important Disclaimer
The on-chain inflation rate has not changed. This update corrects a frontend display issue that previously showed inaccurate information. Rest assured, the tokenomics and on-chain inflation parameters remain consistent and unaffected by this fix.
Background of the Current ASTR Inflation
At block 5514935, we introduced Astar’s Tokenomics 2.0 alongside dApp Staking v3. This upgrade is designed to balance rewards, growth, and sustainability for both ASTR holders and ecosystem builders. It adapts dynamically based on on-chain data, ensuring transparency and efficiency in managing ASTR’s economy.
Key Highlights:
- Annual Inflation Cap: ASTR’s annual inflation is capped at 7% per cycle (~366 days). However, this cap is rarely reached, as actual inflation recalibrates at the end of each cycle based on on-chain activity and ecosystem needs.
- Burn Event and Deflation: Following the launch of Tokenomics 2.0, a significant token burn temporarily made ASTR deflationary, with a net deflation of approximately 1.2%.
- Total Supply Insights:
- Genesis Block: 7 billion ASTR
- Launch of Tokenomics 2.0: 8.39 billion ASTR
- Current Supply: 8.29 billion ASTR
- This reflects an average annual inflation rate of ~6.2% over the last three years.
It’s important to note that while ASTR experienced temporary deflation, this doesn’t mean the token supply will always decrease, the system is designed to issue tokens at a controlled rate to support growth and rewards.
Old chart:
New chart:
Understanding Negative Inflation on the Chart
You may notice that the inflation chart currently shows negative inflation. This is a direct result of the burn event that reduced ASTR’s supply.
Until enough new tokens are issued to reach the pre-burn supply level, the chart will continue to reflect negative inflation.
Excluding the 350M ASTR burn on July 8, 2024, and based on the past year’s token issuance, the current annual inflation rate is estimated at ~3.25%.
This situation is temporary and expected to stabilize as token issuance gradually aligns with the ecosystem’s needs. The system’s dynamic nature ensures that this adjustment happens smoothly and sustainably.
Why Tokenomics 2.0 is a Game-Changer
The adaptability of Tokenomics 2.0 ensures ASTR issuance aligns with ecosystem growth. Each year, parameters such as staking rewards, dApp incentives, and treasury funding are recalibrated to balance sustainability with ecosystem demands.
Looking ahead, ASTR’s tokenomics system offers the flexibility and resilience required for Astar’s continued growth. Whether you’re a long-term holder or a builder driving adoption, our dynamic system supports sustainable development and value retention.
Thank You, Astar Community! 
Your feedback and support make updates like this possible. We’re excited to continue this journey with you and build a more transparent, efficient, and sustainable Astar ecosystem.
Stay tuned for more updates, and as always, feel free to share your thoughts and suggestions!
The Astar Foundation Team
Astar is in an evolutionary phase, the best is yet to come 