Staking Rewards
Last updated
Last updated
Think of the newly-minted ASA as a pie: inflation is the size of that pie. Staking is the right to claim a slice of it. Astra Chain pools and distributes rewards among all stakers, so the more people who stake, the smaller the slice each will receive. On the other hand, a larger pie means bigger pieces for everyone.
At genesis block: Inflation at 10% with approximate rewards rate at 17.6%.
Astra's inflation rate slowly adjusts based on a targeted staking participation rate of 50%. Meaning when 50% of ASAs are being staked, inflation stops changing.
It is also noted that inflation decreases very gradually if more than 50% of ASAs are staked, eventually bottoming out at 3%. However, inflation increases if less than 50% of ASAs are staked, ultimately reaching a maximum of 15%.
Another similar approach can be referred to as Cosmosβs tokenomic: