Aster Slashes Monthly Token Emission by 97%: A Game of Supply and Demand

Aster, backed by CZ, has made a bold move by drastically cutting its monthly token emission rate by 97%. This crypto perps DEX once released 78.4 million ASTER tokens monthly, constituting nearly 1% of its 8 billion total supply. Now, the emissions have plummeted to a mere 1.8 to 2.25 million tokens, issued solely as staking rewards. While the restructuring appears to be a significant step towards curbing sell-side supply, the question remains: is this a genuine path to sustainable price appreciation, or just a temporary reprieve before more dilution occurs?

The shift to a staking-only model means that the once-linear token vesting schedule for network and community allocations is history. Instead, 450,000 ASTER tokens will be released per weekly epoch. Additionally, an active buyback program further tilts the equation towards deflation, with up to 80% of daily platform fees earmarked for token repurchases. Since its launch, 77.86 million tokens have been effectively removed via buybacks, tightening the circulating supply.

But here's the rub: while this structural tweak could strengthen tokenomics, the impact on price isn't certain. The ASTER token has been stable since its initial distribution, which released a hefty 704 million tokens, roughly 8.8% of total supply, creating an initial supply glut. The new emission strategy aims to alleviate this by locking more tokens through staking incentives. However, with insider unlocks frozen until September 2026, the real test will come if governance decides to release treasury tokens beyond staking rewards. Will the market buy into this shift, or will skepticism prevail?

The marketing says decentralized. The multisig says otherwise. For now, the market holds its breath.