$ASTR
ASTR Tokenomics Major Reform! Fixed Total Supply + 50% Fee Burn, Staking APR Locked at 14%?
Astar Network just dropped a game-changing proposal—to transform ASTR from a dynamic inflation model to a fixed supply model, and to use a decay function to drive the inflation rate to rock bottom! This move is directly targeting the "deflation narrative", combined with a 50% fee burn + Protocol-Owned Liquidity (POL), is $ASTR set to become the "small Bitcoin" of the Polkadot ecosystem?
Why is this reform so explosive?
1. Fixed Total Supply + Emission Decay = Deflation Bomb
The current dynamic inflation model (fixed production of 253 ASTR per block) will be abolished and replaced with a maximum supply cap, using a mathematical function to reduce emissions over time. Drawing from the experience of the 2023 Tokenomics 2.0 that reduced inflation from 9.5% to 5.8%, this time it might go directly below 3%!
2. DApp Staking APR Locked at 11-14%
In the next two years, the annualized staking yield will stabilize in the 11%-14% range (the base rewards have already dropped from 25% to 10%), more balanced than Solana (7.29%) and Cosmos (16.5%). The team also hinted at a veASTR model, where the longer you hold the tokens, the higher the rewards!
3. 50% Fee Permanently Burned
Half of the Gas fee for each on-chain transaction will be burned directly (referencing EIP-1559), while the other half will go into the AFC committee treasury for Protocol-Owned Liquidity (POL). Similar to Lido's stETH liquidity monopoly strategy, this move aims to become the "liquidity warlord" of the Polkadot ecosystem!