Astra Chain
  • πŸ‘‹Welcome to Astra Chain
  • πŸŒ‹Problems
    • πŸ’ΈThe customer retention market and its problems
  • πŸ’‘How Astra solves it
    • ⛓️What is Astra Chain?
    • πŸ†Advantages of Astra
    • πŸš€Astra’s vision
    • πŸŽ†How can businesses participate in Astra Rewards?
  • πŸ’°Tokenomics
    • πŸͺ™Token Information
    • 🌏Token Supply
      • Token Distribution at Genesis
      • Block Rewards
    • πŸ“ˆIssuance & Inflation
      • Staking Rewards
    • πŸ”₯Burning Mechanism
    • πŸŒ‰Bridge Solution
  • πŸ’ΎTechnical Specs
    • ▢️Architecture
    • 🏦Staking
    • πŸ”Data Security & Privacy
  • πŸ—οΈCore Contributors
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  1. Tokenomics
  2. Issuance & Inflation

Staking Rewards

PreviousIssuance & InflationNextBurning Mechanism

Last updated 1 year ago

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 Cosmos’s tokenomic:

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https://github.com/gavinly/CosmosParametersWiki/blob/master/Mint.md