Astar Network Cuts Staking Rewards to Control Token Inflation

Tokyo, Japan – April 18, 2025 – Astar Network, one of the leading blockchain platforms supporting multi-chain smart contracts, has announced important adjustments to its tokenomics structure to control inflation and increase the sustainability of the ecosystem.

Specifically, the base staking reward has been cut from 25% to 10%, a move to reduce the amount of automatic token issuance and limit inflationary pressure on ASTR.

This change makes staking rewards more meaningful without causing excessive supply growth, while still maintaining a strong enough incentive for users to continue staking ASTR, Astar Network said in the official announcement.

Dynamic Inflation Model – Pressure from Unlimited Supply
Unlike Bitcoin with a fixed total supply, ASTR operates on a dynamic inflation model – in which new tokens are continuously issued according to the operation of the blockchain. When market demand does not keep up with the issuance rate, the token price can be under significant downward pressure.

To address this, Astar said that they are restructuring their token emission system – switching to a Total Stake Value (TVL)-based management model instead of a fixed issuance per block. This will make the staking interest rate (APR) of DApps more stable and predictable.

In addition, a new minimum emission threshold of 2.5% has also been set to ensure that the system does not lose its development momentum. Astar continues its **transaction fee burning** policy, contributing to reducing the number of tokens in circulation and maintaining staking rewards at a reasonable level.

The Impact is Obvious – Inflation Rate Reduced and Annual Emissions Controlled

According to data released by Astar, the changes have reduced the annual inflation rate from 4.86% to 4.32%. The number of ASTR issued per block has decreased from 153.95 to 136.67 tokens – equivalent to a reduction in annual emissions of approximately 11%, from 405 million to 360 million ASTR.

Market Reacts – ASTR Price at Record Low
The inflation controls come as ASTR hit a historic low of just $0.02 on April 7, according to CoinGecko data – a 93.8% drop from its January 2022 peak of $0.42.

ASTR had previously surged during the market recovery in December 2024, reaching $0.09, but then continued to slide in the first quarter of 2025.

Compared to the general trend – Staking industry-wide volatility
Astar is not the only protocol adjusting its staking policy. Babylon, a Bitcoin staking protocol, saw $1.26 billion worth of Bitcoin unstaken in a single day, causing its TVL to drop 32% – from $3.97 billion to $2.68 billion, according to data from DefiLlama.

Conclusion: Is Astar Tightening Its Belt to Prepare for a New Growth Cycle?

Astar Network’s adjustment of staking rewards and adoption of a more sustainable inflation model can be seen as a strategic move during a period of market uncertainty. Although ASTR’s price is currently low, changes to tokenomics could lay the groundwork for a more sustainable recovery for the token in the future.