Astar Blockchain CEO Endorses Tokenomics 3.0 Upgrade, Caps Supply at 10.5 Billion Tokens

Startale Group CEO Sota Watanabe has publicly endorsed the Tokenomics 3.0 proposal, emphasizing its role in driving blockchain performance and fostering community trust. Watanabe highlighted that effective token models are crucial for guiding value flow and enhancing network resilience. He also stressed the importance of clear supply rules in achieving long-term stability. Watanabe explained that a fixed supply and decaying emissions create a predictable economic environment. He further underscored the benefits of protocol-owned liquidity for achieving financial autonomy. Watanabe's endorsement signals investor confidence and broader community support for the Astar Blockchain.
The Tokenomics 3.0 upgrade represents a significant shift in Astar's tokenomics, transitioning towards a fixed supply model. This upgrade caps the total number of ASTR tokens at approximately 10.5 billion, effectively ending future minting to address inflation concerns. Emissions will remain dynamic through a decay function tied to staking, which slows token rewards over time to balance incentives. This design ensures that staking remains attractive without causing excessive inflation. By fixing the supply and using decay, the new tokenomics model supports predictable economics, aiming to sustain network growth and secure long-term stability for stakeholders. It balances token value with sustainable ecosystem expansion.
Another core element of the upgrade is the incentives for builders and validators. The model continues to offer dApp staking rewards with a planned yield decline. Initially, the Annual Percentage Rate (APR) is near seventeen percent with bonus rewards. Over two years, the yield decays toward around eleven percent APR. This gradual change balances developer incentives with network sustainability, keeping builders engaged without driving excessive inflation. The design supports responsible token circulation within the Astar Blockchain, allowing developers and validators to plan long-term participation based on clear reward schedules. This incentive structure reflects community feedback and aims to foster sustainable ecosystem growth.
A key feature of the Tokenomics 3.0 upgrade is Protocol-Owned Liquidity (POL). The Astar Finance Committee will manage the POL fund, which uses twenty percent of network fees and unused staking rewards. This fund helps the Astar Blockchain secure Polkadot coretime slots autonomously, avoiding reliance on costly crowdloan campaigns. The POL structure strengthens financial independence and reduces external funding needs. It adapts to Polkadot’s evolving core time requirements and security demands, serving as a strategic liquidity reserve. This approach enhances protocol resilience and self-sufficiency within the wider ecosystem. Stakeholders can track POL performance through transparent reporting.
The upgrade also introduces a new fee burn and allocation system. Under the new rules, fifty percent of transaction fees are permanently burned, thirty percent go to collators supporting network operations, and the remaining twenty percent are allocated to ecosystem development and the POL structure. This allocation maintains critical network services and community grants. The burn process reduces the circulating supply and reinforces the fixed-supply goal. These clear rules improve transparency and predictability. Monthly reports and public dashboards allow stakeholders to monitor fee usage and token burns, aligning with long-term ecosystem health and providing clear guidance for sustainable operations.
Technically, the Tokenomics 3.0 upgrade involves updating Astar Blockchain smart contracts. It activates a supply lock to enforce the fixed supply, integrates the emission decay formula into the runtime environment, and embeds an enhanced burn mechanism directly into the protocol code. Protocol-Owned Liquidity features become formal on-chain functionality. All updates undergo Astar Foundation review before deployment. Users will access public dashboards for real-time transparency, and monthly performance data provides accountability for token economics. These changes enforce disciplined token behavior and secure network integrity. Developers can audit code updates via public repositories, building community trust.
The implementation of Tokenomics 3.0 follows a clear roadmap that began in April 2025. Initial community discussions served as a temperature check, and the process includes concept design, technical development, and testing phases. Community feedback is integrated at each major checkpoint, with full deployment targeted for mid-2026. This method ensures transparency and shared ownership, with stakeholders receiving regular updates through public channels and polls. Clear timelines guide planning and resource allocation, strengthening confidence in future Astar tokenomics by aligning with community needs. Regular surveys keep the plan adaptive to feedback, balancing efficiency and stakeholder input.

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