Astar Network becomes the first blockchain to implement SuperchainERC20 standard for its ASTR token

In a move aimed at addressing longstanding interoperability issues between networks like Ethereum and Polkadot.

Astar Network, a rapidly growing layer-1 blockchain built on Polkadot, has achieved a significant milestone with the implementation of the SuperchainERC20 standard for its ASTR token.

This integration, first announced by Astar in April, marks the first time a blockchain has adopted the standard, which is designed to facilitate interoperability between Optimism’s OP Superchain and the Polkadot ecosystem.

ASTR can now seamlessly move between Astar's layer-1, Sony's Soneium and eventually all OP Superchain networks, as confirmed by Astar in a recent statement to Cointelegraph.

This development also marks ASTR as one of the first bridges between the Polkadot and Ethereum ecosystems, potentially paving the way for ASTR to become a multichain asset with broader utility.

“The ASTR interoperability on Optimism’s Superchain creates an ideal foundation for DeFi growth across Ethereum and the Superchain,” said Zain Bacchus, staff product manager at OP Labs, the developer of Optimism and the Superchain.

The crosschain functionality is powered by Chainlink CCIP, a crucial component of the Chainlink ecosystem, specifically designed for facilitating token transfers across various chains.

“This is the first real-world example of a secure, standards-based architecture for native crosschain interoperability, a glimpse into the future of how tokens will move across ecosystems,” added Maarten Henskens, head of Astar Network.

Astar Network is a collective focused on driving Web3 adoption by bridging Polkadot and Ethereum. Its mainnet opened to the public in January 2022.

Currently, the ASTR token is valued at less than 3 cents with a total market capitalization of $226 million.

Astar Network is juggling inflation

The ASTR token plays a key role in the Astar Network, used for transaction fees and staking. However, its value has been steadily declining, partly due to the network's dynamic inflation model.

In April, Astar developers introduced changes to the tokenomics to reduce inflationary pressure. They slashed the base staking reward to 10% from 25%, lowering the network's projected annual inflation rate to 4.32% from 4.86%.

As a result, annual ASTR emissions are projected to decrease by 11% to approximately 360 million tokens.

Astar isn't the only blockchain rethinking its token supply. In January, Multicoin Capital submitted a proposal to transition Solana to a variable-rate emission model, aiming to curb inflation and address concerns around concentrated token ownership.