Astar has always been the Japanese public blockchain project that I pay close attention to (long ago, ASTR was formerly known as Plasm Network). Do you still remember when ASTR first launched a year ago? It established a very ambitious vision at the time – in summary, it is to become the hub in the middle of the multi-chain ecosystem for DAPPs, making web3 scalable.
First let’s discuss ASTR’s advantages:
- ASTR’s funding institutions lineup from early on is very impressive. It was first led by Binance Labs (Binance’s incubator), the second round of financing was led by Distributed Capital, and many well-known investment institutions followed like IOSG, AU21 etc. The joining of these high quality institutions would inject momentum into real bull market performance.
- ASTR can be considered the star project within Polkadot, capable of hosting the operations of many Polkadot ecological DAPPs. It is regarded as the hopeful star of Polkadot’s next bull market. As a result, when the project first launched, it had its initial exchange offering on Binance Network. Back then, you could say its popularity was number one. Currently, many investors also classify ASTR as a top-tier Japanese public chain project.
- From a technical perspective, ASTR has strong scalability and can directly bridge with Ethereum, Cosmos and other blockchain ecosystems. At the same time, WASM and EVM can coexist and connect with each other within it, laying the foundation for future ecosystem prosperity.
- ASTR’s new tokenomics 2.0 reduces the inflation rate of the project, while shifting focus toward ecological development. There is increased emphasis on the interests of network participants and block validators. The future thriving ecology depends closely on rational tokenomics.
Now let’s discuss the issues:
- Since ASTR’s launch last year, its ecosystem development has not exhibited prominent strengths. There are too few star projects on the chain, and total value locked (TVL) also remains low. It cannot yet compare with new Layer 2 ecosystem projects. Of course we can also attribute this issue to the overall downturn of the entire crypto market. But during such depressed periods, we should focus even more on building.
- After ASTR’s launch, the team has repeatedly mentioned voting on reforming the project’s tokenomics. However, the implementation of the new tokenomics only recently completed in reality, demonstrating relatively low efficiency.
- The current state of Polkadot’s ecological development appears very weak. Can an economic model relying on selling slots remain sustainable? This is a serious concern. Meanwhile, Astar’s project party does not seem to have the intention to migrate. While it is true as a shining star of Polkadot, some responsibility must be fulfilled. But seeking a new pathway also does not make for a bad choice.
I am very supportive of Astar (Shiden)’s design philosophy and I am optimistic on the DAPP staking model. However ASTR and SDN’s circulation model, coupled with the two lockdrop token distributions completed long ago have led to substantial selling pressure after token listing. Moreover, there were no lock-up mechanisms for airdrops, crowdloans, and investors which negatively impacts the secondary token price. Yet, if operations of its ecosystem can rectify these negative impacts, then the value potential would be strengthened beyond imagination! Investors in ASTR could consider small long-term holdings of the token. When bull market liquidity returns, ASTR’s expected performance seems very promising.