Proposal #26

Transition the Astar Collective to a sustainable compensation model

Democracy
1d 16hrs ago
0
Proposed

I. Summary

This referendum permanently transitions all Astar Collective governance compensation from USD-based calculations to fixed ASTR-denominated amounts, using a reference price of $0.05 ASTR. It eliminates mandatory quarterly distribution votes and establishes a structured annual review mechanism with defined emergency thresholds.

This proposal was built jointly by the Astar Community Council (ACC) and the Astar Finance Committee (AFC) as part of the Astar Foundation Forward initiative, and refined through extensive community discussion on the Astar Forum.

II. Background

Under the existing model, governance compensation was calculated in USD and converted at prevailing market prices at time of distribution. This created two compounding structural problems:

  • During low-price periods, the treasury was forced to distribute disproportionately large token quantities to meet USD-equivalent targets, increasing sell pressure and draining ecosystem resources
  • Treasury planning became unpredictable, as the actual ASTR cost of governance obligations fluctuated with every market movement

This proposal resolves both problems at the root by fixing compensation amounts in ASTR, eliminating the USD conversion entirely.

The transition was discussed publicly on the Astar Forum beginning February 10, 2026, with participation from ACC, AFC, AAF members, and broader community contributors. The parameters in this referendum reflect the final aligned outcome of that discussion.

What This Referendum Establishes

1. Reference Price: $0.05 ASTR

All governance compensation is calculated against a fixed reference price of $0.05 ASTR. Key properties:

  • Fixed: Does not fluctuate with market conditions
  • Anchored: Near ASTR's Q1 2025 average ($0.044), the strongest period of the past year
  • Forward-looking: Reflects conviction in the ecosystem's recovery trajectory, not trailing averages
  • Dual function: Determines fixed ASTR compensation amounts and acts as a commitment signal

When ASTR trades below $0.05, governance contributors are operating under less favorable conditions by choice, not obligation. That shared exposure has real cultural and alignment value for the ecosystem.

2. Fixed Quarterly Compensation Amounts

Astar Community Council (ACC)

Role Members Per Member / Quarter
Full Member ×4 48,000 ASTR

Astar Finance Committee (AFC)

Role Members Per Member / Quarter
Full Member ×5 48,000 ASTR
Observer ×1 18,000 ASTR

Astar Ambassador Fellowship (AAF)

Role Members Base / Quarter Performance Bonus
Head Ambassador ×0 25,000 ASTR Up to 5,000 ASTR
Mid Ambassador ×10 16,000 ASTR Up to 4,000 ASTR
Ambassador ×0 8,000 ASTR Up to 2,000 ASTR

AAF compensation is structured as a recognition reward for ecosystem contribution, not as a salary. Performance bonuses are evaluated per individual per quarter.

3. Distribution Model

  • Compensation is distributed on a standard quarterly cadence by the Main Council
  • Mandatory quarterly referendums on distribution timing are eliminated

Since compensation is fixed in ASTR, the treasury's obligation remains constant regardless of price movements. Periodic community votes were designed for a USD-based model where market conditions directly affected token outflows, that rationale no longer applies. Community authority is preserved through the annual review and emergency mechanisms outlined below.

4. Reference Price Review: Annual + Threshold-Triggered

The $0.05 reference price is not permanent. It can be adjusted through a public referendum initiated by the Main Council under two conditions:

Annual Review

  • The Main Council may propose a reference price adjustment once per calendar year via public referendum
  • Ensures the framework remains adaptable without being subject to constant revision

Emergency Review Thresholds

An immediate re-evaluation is triggered if either condition is met for two consecutive quarters:

Direction Threshold Change from Reference
Upper $0.10 or above +100%
Lower $0.015 or below -70%

⚠️ Important: The lower threshold becomes active only once ASTR first reaches the $0.05 reference price. It does not apply retroactively to current price levels. The mechanism is designed to respond to material deviations from the reference point once achieved, not to current market conditions.

These thresholds are intentionally set high to discourage frequent adjustments while providing a structured path to respond if market conditions deviate in a genuinely exceptional way.

IV. Scope

This referendum applies to the following Astar Collective governance bodies:

Astar Community Council (ACC)
Astar Finance Committee (AFC)
Astar Ambassador Fellowship (AAF)

The Astar Technical Committee (ATC) does not have any compensation framework at the moment and will not be affected by this proposal.

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