#16·Update dApp Staking Parameters to Enhance Tokenomics and Stabilize APR

Democracy
5d ago
7 Comments
Tabled

Proposal Description

This proposal, initiated by the Astar Foundation, recommends an update to the dApp Staking parameters to optimize Astar's tokenomics and bring staking APRs closer to a sustainable, stable range. The proposed changes aim to align staking rewards with ecosystem activity, reduce inflation, and enhance long-term value for ASTR holders.

Summary of Proposed Changes

  • Reduce BaseStakersPart from 25% to 10%
  • Increase AdjustableStakersPart from 40% to 55%
    Total staker reward allocation remains unchanged.

Why This Matters

  • Reduce Inflation: When the staking ratio is low, current inflation levels are unnecessarily high. This change reduces excess inflation while maintaining staking incentives.
  • Stabilize APR: Tying rewards more closely to the staking ratio will make APRs more predictable and competitive.
  • Support Ecosystem Growth: These adjustments help Astar remain aligned with industry benchmarks (e.g., Polkadot, Injective) while preserving a lower inflation rate.

By implementing these adjustments, Astar will move closer to the ideal 50% staking ratio, creating a more resilient and attractive ecosystem for both developers and stakers.

Engage & Discuss

We encourage all ASTR holders to review the full discussion and rationale on the Astar Forum:
Astar Forum – Tokenomics Adjustment Proposal

Your vote matters in shaping Astar’s future. Please review, share your thoughts, and participate in the governance process.

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I would prefer to get paid good for holding this gem to 0.

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The link to the "Tokenomics Adjustment Proposal" forum discussion isn't working and I did not found such discussion.

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hi

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My opinion as a 4 year holder. "since the lockdrop began"

This is just a starting point, but we need to begin somewhere. Following this, we should consider drafting a proposal similar to Ethereum’s EIP-1559 upgrade. As an initial step, we could implement a mechanism to burn 20% of the transaction fees from each transfer. This would allow us to monitor how the burn affects the token’s value and overall network dynamics.

Based on the results, the burn rate could be adjusted up or down as needed. If the community supports this idea and the response is positive, I would be open to drafting and submitting the proposal myself.

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After reviewing the forum discussion (thanks for fixing the link), I'm still left with two major issues:

  1. Why lower the APR when the staking ratio is low? Shouldn't a higher APR encourage more staking, helping us return to the ideal staking rate more quickly? Otherwise, don't we risk drifting further below the optimal staking rate?
  2. Collator staking isn't adjusted in the same way: Bifrost's vASTR currently offers a 29% APY (30d). As far as I understand, they are nominating collators. It seems quite unfair to only adjust dApp staking.
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🥳🎉 Yes

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