Tokenomics 2.0
Tokenomics 2.0 is Astar Network's economic model governing token emission, reward distribution, and fee handling. It replaced the original model to align inflation more tightly with actual staking participation and network usage.
The outline of the phased approach to Tokenomics 2.0 as it progressed:
- Phase 0 - Forum Discussion:
- ✅ ongoing throughout all phases
- Phase 1 - Fee Adjustments:
- ✅ Shibuya testnet - live since October 2023
- ✅ Shiden - live since November 2023
- ✅ Astar - live since November 2023
- Phase 2 - Hybrid Inflation Model (Reduction of collators' reward and treasury reward, reduction of inflation)
- ✅ Shibuya testnet - live since November 2023
- ✅ Shiden - live since December 2023
- ✅ Astar - live since December 2023
- Phase 3 - Full Inflation Model (activation of dAppStaking v3 which affects block reward calculation, further reduction of inflation)
- ✅ Shibuya testnet - live since December 2023
- ✅ Shiden - live since February 2024
- ✅ Astar - live since February 2024
Astar, Shiden and Shibuya share the same economic model, however configuration differences exist. Following chapters focus on Astar (ASTR token) but also apply to Shiden (SDN token) and Shibuya (SBY token).
📄️ Fee Model
Each block is a limited resource - it can only fit a limited amount of transactions. This is an oversimplification, but the point is that every transaction included in the block consumes a portion of the block’s resources.
📄️ Inflation
Astar has a soft-capped 'yearly' inflation and uncapped max supply.
📄️ Legacy Tokenomics
The following subchapters cover legacy Astar tokenomics models.