Astar Network Publishes Tokenomics 2.0: A New Approach to Inflation, Fees, and dApp Staking

Astar Network has announced a comprehensive update to its tokenomics, referred to as Astar Tokenomics 2.0, aiming to drive sustainable growth and improve user engagement. The detailed explanation of the changes was posted on the Astar Network forum, and here’s a summary of the key aspects:

Current Tokenomics Overview

The current tokenomics of Astar Network involves a fixed inflation rate of roughly 9.5% per year, with each block emitting 253.08 new ASTR tokens. The distribution of these tokens goes to various actors within the network, including the collator responsible for authoring the block and the on-chain treasury.

Problems Addressed

The new proposal aims to address several issues:

High & Fixed Inflation: The current fixed block reward doesn’t adjust based on network utilization or the number of dApps.

Scalable & Inclusive dApp Staking: The existing dApp staking model needs to be more dynamic and scalable.

Native & Ethereum Fee Alignment: The fees between native Substrate and Ethereum are not aligned.

High Treasury & Collator Rewards: The current allocation to the treasury and collators is considered excessive.

Proposed Solution

The proposed changes are comprehensive and include the following key aspects:

Inflation: The new inflation rate will dynamically adjust every year based on the total supply, with an estimated yearly inflation of around 5.8% if the proposed model is deployed immediately.

Treasury: A fixed rate of 5% of the yearly inflation will be assigned to the treasury.

Collators: Collators will receive 3.2% of the yearly inflation, a reduction from the current rate.

dApp Staking: The new model introduces tiers and makes the system more inclusive for new dApps.

Transaction Fees: The solution aims to align Substrate native & Ethereum fees as closely as possible.

Rent Fees: Rent fees will be reduced by a factor of 100, making on-chain storage significantly cheaper.

Summary of Changes

The main modifications include adjustments to the inflation model, dApp staking protocol, transaction fees, and rent fees. Some of the highlights include:

If TVL (Total Value Locked) is not in the ideal range, not all staking rewards will be minted.

If empty slots are present in dApp staking during a period, the rewards for that period will be burned.

Transaction fees will incur a significant burn, with 80% being burned and 20% being deposited to the collators.

The inflation rate will constantly adjust to on-chain parameters.

Next Steps

The Astar Network team has outlined the next steps, including opening up community forum discussion, sharing the implementation plan & execution, and creating comprehensive documentation.

The proposed changes are seen as progressive steps to elevate Astar’s tokenomics for a sustainable future. The adjustments are not considered final and can be modified as needed for the stability and health of the network.

Image source: Shutterstock


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LooksRare NFT Marketplace Upgrades to Version 2, Reducing Fees by 75%

LooksRare, a non-fungible token (NFT) marketplace, has announced an upgrade to version 2. The company revealed that the new platform would reduce fees by 75% and implement several other features. The previous version, LooksRare v1, charged 2% per trade, but this has now been reduced to 0.5% in version 2. In addition, the new version has more gas-efficient contracts, allowing users to save approximately 30% on gas fees versus the previous version of the app.

The LooksRare team explained that in version 2, sellers receive Ether (ETH) instead of Wrapped Ether (WETH) for most sales. The smart contracts also allow for bulk buying and selling orders if a user wants to place multiple trades simultaneously. Furthermore, aggregators can now implement custom recipients, allowing users to buy an NFT with one wallet but send it to another.

Sellers can now list their NFTs for sale in token prices instead of ETH. This includes the option to list an NFT for a fixed U.S. dollar price to be paid in equivalent ETH.

LooksRare v1 will be sunsetted, according to the team’s separate April 7 post. On April 12, the app’s front end will no longer allow users to post version 1 auctions through the public API. All current v1 auctions will be removed from the website at 10:00 am UTC on April 13, and the smart contracts themselves will be disabled through an admin function at 11:00 am UTC.

The announcement of the upgrade has received mostly positive reactions, as many LooksRare users believe the new features will provide a strong challenge to competitors such as OpenSea and Blur. However, some users have expressed doubts that v2 will be enough of a change to attract users from other platforms. These users have cited the lack of good token incentives and the inability to list enough collections as potential issues.

Despite some controversy in October when the company decided to eliminate creator royalties, LooksRare has benefited from the recent boom in NFT prices. The company’s latest upgrade to version 2 shows its commitment to providing users with an efficient and cost-effective NFT marketplace.


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Why is my Bitcoin transaction unconfirmed?

Transaction costs are calculated based on the transaction’s data volume and network congestion.

As a block can only hold 4 MB of data, the number of transactions that can be executed in one block is limited. Therefore, more block data is required for a larger transaction. As a result, more significant transactions are usually charged on a per-byte basis.

When you use a BTC wallet to send a transaction, the wallet will typically provide you with the option to choose your Bitcoin fee rate. This charge will be determined in satoshis per unit of data (there are 100,000,000 satoshis in one Bitcoin) consumed on the blockchain by your transaction, abbreviated as sats/vByte. This rate will then be multiplied by the size of your transaction to get the total fee you’ll pay.

If you want your transaction to be confirmed right away, your optimal fee rate may vary significantly. If you don’t mind waiting, spending 2 sats/vByte will usually allow you to confirm your transaction within a day or a week.

Transaction fees also reflect the speed with which the user wants to have the transaction validated. When a user initiates a transaction, it goes into the mempool (transactions that have not yet been put to the blockchain and are being stored in volatile memory).

Upon validation, it is included in the block. Miners choose which transactions to validate and include in the block. When there is a backlog of transactions waiting to be validated, it creates an incentive for miners to process transactions with higher fee rates first. Most miners target transactions with high fee to byte ratios. When network transactions begin to reduce, transaction fees will fall.

Bitcoin exchanges, which connect buyers and sellers, calculate their fees in two ways: either a fixed fee per transaction or a percentage of total transaction volume over the previous 30 days. Exchanges use a tiered fee structure, depending on the total dollar volume transacted in both circumstances.

Fee arrangements are designed to encourage traders to trade frequently. As a result, costs for high-value and high-frequency transactions are correspondingly reduced. Fees for small, infrequent transactions are frequently higher.


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Mintable app to support minting NFTs on the layer 2 Immutable X protocol

Mintable marketplace announced its partnership with Immutable X, a StarkWare-based layer 2 solution for NFTs on Ethereum, to make over 24 million NFTs on Immutable X available for sale on Mintable. This integration will enable users to deposit ETH and ERC-20 tokens with instant confirmation and no gas fees.

According to Mintable’s Twitter thread, Mintable and Immutable X share a vision to scale NFT marketplaces by offering access to NFTs to the masses.

Although zero gas fees may sound appealing, the size restriction for gasless files is only 300 MB. Anything larger than that will incur gas fees. 

Mintable’s blog statement also claimed that neither decentralization nor user custody would be compromised. Since assets are secured on the Ethereum blockchain, the project believes that users will be able to securely manage their NFT trading experience.

Related: Immutable raises $60M for its carbon-conscious NFT platform

According to Immutable X, the project ensures that any NFT activity on its protocol is completely carbon neutral. This doesn’t mean it is carbon emission free, rather that it is purchasing carbon credits to offset any gas consumed on Ethereum.

Robbie Ferguson, Cofounder and President at Immutable , said about the partnership:

“We want to be everywhere NFT fans are and Mintable’s dedication to break new ground in empowering audiences with smart contracts is mind blowing. We are excited to welcome the communities and work with Mintable app to grow NFT marketplaces.”

Mintable also operates a decentralized autonomous organization; the first DAO to run on NFTs and not on ERC-20 tokens. The Mintable NFT DAO relies on MINT voting NFTs. MINT holders can sell their voting NFTs on open marketplaces just like any other NFT.