Astar reduces base staking rewards to curb inflation pressure
Astar Network has reduced its base staking rewards from 25% to 10% to mitigate inflationary pressures on its ecosystem. This adjustment aims to stabilize the annual percentage rate (APR) for users while ensuring rewards remain meaningful. Astar operates under a dynamic inflation model without a fixed maximum supply, which can lead to downward pressure on token value if demand does not match supply. To combat this, Astar is implementing new inflation-control mechanisms, including routing token emissions into total value locked (TVL)-based rewards and establishing a minimum token emission threshold of 2.5%. These changes have decreased the annual inflation rate from 4.86% to 4.32% and reduced total ASTR tokens emitted per block from 153.95 to 136.67. The ASTR token recently hit an all-time low of $0.02, down 93.8% from its peak of $0.42 in January 2022.
