Sota Watanabe, the founder of Astar (ASTR), recently announced that the company will roll out the second version of its token economy next week. This update aims to significantly reduce inflation and boost the burn rate.
In his statement, Watanabe shared, “dApp staking v3 is coming next week. This means that the second version of tokenomics will also be deployed soon. We will almost halve inflation and increase the burn rate.”
Astar’s Tokenomics 2.0 version, as outlined on the official website, promises a sustainable token allocation structure and network fees, alongside a lower inflation rate. The unique dApp Staking mechanism of Astar provides financial incentives to cryptocurrency developers and fosters a robust relationship among developers, stakers, and dApp users.
Under this system, developers earn rewards for creating and promoting their projects, while stakers earn rewards for supporting their preferred dApps. Despite maintaining the core mechanism of dApp Staking, the new version brings forth several enhancements to address internal and community-discovered challenges and flaws in the initial protocol design:
1. Scalable Rewards: Recognizing the limitation on the number of dApps that can be hosted due to restricted rewards, the objective is to establish a system that allows for an increase in the number of supported dApps as the network’s value grows.
2. Reward Limitation: Each dApp will have a maximum limit on the rewards it can earn to ensure equitable distribution.
3. Support for New dApps: Newly launched dApps entering the staking protocol will not immediately compete with more established ones for significant rewards. Instead, a tier-based reward distribution system will be introduced to encourage healthy competition while providing opportunities for newcomers.
