Blockchain technology is spreading worldwide, with adoption increasing in multiple industries. Japan is one of the leading countries in embracing Web3 technology, having positioned itself as an early adopter of blockchain.
Among the many platforms in the country, Astar Network has emerged as the most popular. This article explores what Astar Network is, how its infrastructure works, the role of the ASTR token, and its governance system.
What is the Astar Network?
Astar Network is Japan’s most widely used smart contract platform, designed to support both Ethereum Virtual Machine and WebAssembly environments.
Source: Astar Network
It enables interoperability between these two systems using a Cross Virtual Machine. The platform offers developers the flexibility to use familiar programming tools and languages, making it an attractive option for blockchain builders.
Astar is built on Polkadot, benefiting from its shared security while maintaining its independent ecosystem. This structure allows the network to attract corporate adoption and consumer interest in Web3 technologies.
A major feature of Astar Network is its Build2Earn system, which incentivises developers to create and maintain decentralised applications.
Unlike traditional blockchains, which often lack developer rewards, Astar ensures builders are compensated for their work. Users can also support their preferred projects while contributing to the ecosystem’s overall growth.
Another strength of Astar is its focus on scalability. Many blockchains struggle with transaction delays due to security measures built into their consensus mechanisms.
Astar addresses this by enabling seamless interactions between different virtual machines, ensuring efficient execution while maintaining security.
How Does Astar’s Infrastructure Work?
Astar Network is designed to bridge Polkadot and Ethereum, leveraging the strengths of both ecosystems. Polkadot provides scalability, security, and cross-chain interoperability, while Ethereum offers the largest developer community and established smart contract frameworks.
Source: Astar Network
This dual infrastructure enables DApp developers to build on a scalable, cost-effective network while maintaining full Ethereum Virtual Machine (EVM) compatibility.
Astar’s infrastructure consists of two main components: Astar Parachain and Astar zkEVM, both of which support EVM-compatible environments. This ensures that applications built on Ethereum can be deployed on Astar with minimal modifications.
Additionally, Astar provides DApp Staking, allowing developers to earn rewards for building on the network.
It also integrates cross-chain messaging (XCM) for interoperability between different blockchains and supports forkless upgradability, ensuring smooth network upgrades without hard forks. Now, let’s break down Astar’s two key infrastructure components.
Astar Parachain
Astar operates as a parachain on Polkadot, meaning it benefits from Polkadot’s shared security model and cross-chain interoperability through XCM. This structure ensures that Astar remains scalable without compromising decentralization.
One of Astar’s unique features is ink! smart contracts, a WebAssembly (Wasm)-based smart contract framework. While Solidity-based EVM contracts are widely supported, ink! provides developers with additional flexibility and security, particularly for Rust-based development.
Astar’s forkless upgradability allows continuous network improvements without requiring disruptive hard forks. This makes it more adaptable than traditional blockchain networks that rely on major version updates to implement protocol changes.
Astar zkEVM
Astar zkEVM is a Layer 2 scaling solution built on Polygon’s Aggregation Layer (AggLayer), offering high performance while maintaining Ethereum equivalence.
It utilises zero-knowledge proofs to batch transactions and settle them efficiently, reducing fees and increasing transaction speed.
Astar zkEVM allows developers to tap into Ethereum’s vast liquidity and developer ecosystem while benefiting from lower costs. This enables Ethereum-native DApps to scale seamlessly on Astar while maintaining full EVM compatibility.
However, the Astar zkEVM will be shutting down soon, as the team is planning to focus more on the Astar Network’s layer one blockchain itself, meaning, this will only be a part of Astra’s history.
The ASTR Token
The ASTR token is the native asset of Astar Network, serving as the backbone of its ecosystem. It plays a crucial role in governance, staking, transaction fees, and DApp incentives, ensuring the smooth operation and sustainability of the network.
As Astar continues to evolve, so too has the economic model behind ASTR, with a transition from Tokenomics 1.0 to 2.0 aimed at optimising sustainability and network growth.
Token Use Cases
ASTR has multiple functions within the Astar Network. It is primarily used for transaction fees, securing the network through staking, and rewarding developers via DApp Staking.
Source: Astar Network
The DApp Staking mechanism is a unique feature that allows developers to receive a share of staking rewards, incentivising the creation and maintenance of high-quality applications on Astar.
Additionally, ASTR is utilised for governance, allowing holders to vote on proposals that shape the future of the network.
Beyond these core functions, ASTR plays a role in cross-chain interoperability, enabling smooth interactions between different blockchain ecosystems, particularly within the Polkadot and Ethereum landscapes.
By integrating with both, Astar leverages the strengths of Polkadot’s parachain infrastructure and Ethereum’s expansive developer community.
From Tokenomics 1.0 to 2.0: What Changed?
- Astar Network introduced Tokenomics 2.0 to refine its economic model and improve long-term sustainability. Key changes include:
- Lower Inflation: The annual issuance rate was optimised to approximately 665 million ASTR, reducing inflationary pressure.
- Refined DApp Staking: The updated staking model ensures rewards are distributed more efficiently, benefiting both developers and stakers while promoting long-term network sustainability.
- Burn Mechanisms: A portion of gas fees and unclaimed staking rewards are now burned, helping to counteract inflation and maintain token scarcity.
- Optimised Treasury Allocation: Adjustments were made to better distribute funds between the Astar Treasury and Community Treasury, ensuring continuous ecosystem development and innovation.
The Governance System on Astar Network
Astar Network follows a decentralised governance model inspired by Polkadot’s system. The governance structure allows token holders to propose, endorse, and vote on changes to the network.
Source: Astar Network
Astar employs a council-based approach to decision-making. The Main Council, which consists of network leaders and investors, is responsible for approving major proposals.
The Technical Committee, made up of blockchain developers, ensures that technical updates are implemented effectively.
Additionally, the Community Council manages funds and initiatives that benefit the broader ecosystem.
Governance on Astar operates through a voting system where token holders participate in decision-making. Proposals undergo multiple stages before being implemented. First, an idea is submitted and supported by endorsements.
The most supported proposals are upgraded to referendums, where the broader community votes on them. If a referendum passes, it is scheduled for execution after a brief waiting period.
Astar also allows for fast-tracked decisions in emergencies. The Technical Committee can accelerate critical proposals to ensure the network remains stable.
The governance system is designed to be inclusive while maintaining the efficiency needed to support a growing blockchain ecosystem.
Conclusion
Astar Network is Japan’s most widely used blockchain platform, offering smart contract compatibility across multiple environments. Built on Polkadot, it provides interoperability between Ethereum and WebAssembly applications, making it an attractive option for developers.
The ASTR token plays a key role in the network, supporting transaction fees, staking, and governance. The network’s governance system ensures that community members have a say in important decisions while maintaining security and efficiency.
By combining developer incentives, scalability, and cross-chain connectivity, Astar Network continues to strengthen its position as a leading blockchain platform.