Astar Proposes Fixed Supply, 50% Fee Burn for Token Stability

Astar has proposed a significant adjustment to its tokenomics model, aiming to transition from a dynamic inflation model to one with a fixed maximum supply. This proposal, initiated on May 8th, seeks to gradually reduce token emissions by introducing an emission decay function, which will significantly lower network inflation. The goal is to stabilize the DApp staking's maximum annualized return rate at 11-14% over the next two years, preparing for the next phase of brand upgrade.

In addition to the emission decay function, the proposal suggests establishing Protocol-Owned Liquidity (POL) managed by the Astar Finance Committee (AFC). This move is intended to enhance ASTR's long-term economic value and network sovereignty. Furthermore, the proposal includes burning 50% of the network transaction fees, which is expected to further bolster the token's economic stability and value.

This tokenomics adjustment is a strategic move by Astar to address the challenges posed by dynamic inflation models. By fixing the maximum token supply and implementing an emission decay function, Astar aims to create a more predictable and stable economic environment for its users. The stabilization of the DApp staking's return rate is also a key aspect of this proposal, as it provides a clear and attractive incentive for users to participate in the network.

The establishment of Protocol-Owned Liquidity (POL) and the burning of network transaction fees are additional measures that underscore Astar's commitment to enhancing the long-term value of the ASTR token. These actions are designed to increase the token's scarcity and economic value, while also strengthening the network's sovereignty and resilience. Overall, this tokenomics adjustment proposal represents a significant step forward for Astar, as it seeks to create a more stable and valuable ecosystem for its users.