STARS Token

Stargaze is one of the first IBC-connected app chains to launch, debuting on October 29, 2021.

Stargaze is one of the first IBC-connected app chains to launch, debuting on October 29, 2021. Stargaze is entirely owned and governed by its users via STARS. STARS was fair launched via a Liquidity Bootstrapping Pool on Osmosis, creating an equitable, accessible, and widespread distribution.

Stargaze has one of the lowest inflation rates of all proof-of-stake chains, and is cut by 1/3 each year.

Current Inflation = 6.83%

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Details

Current Inflation Rate Data

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Value

Total Supply

Initially, there were 4 billion STARS tokens, but this number was reduced to 3 billion following a governance vote on May 27, 2023 (Proposal 165). As of June 17, 2024, 2.5 billion STARS tokens are in circulation, with the remaining tokens yet to be issued.

Projected Burn

STARS is a deflationary token. In the early years of the chain, the total supply of the token will grow, but in the long term, the supply will continue to reduce due to the Fair Burn mechanism. The following chart shows the projected burn and supply of STARS into 2032, using a projected burn growth rate of 25% as chain volume increases.

Genesis Supply

The Genesis supply aimed to distribute the token widely within the community. For instance, the initial supply allocated 25% for an airdrop, distributing over $100 million in value to community members.

Inflation Timeline

STARS was launched on October 29, 2021, marking Year 0. Each new year begins on January 1. Inflation started on January 1, 2022, with the token supply at the beginning of each year displayed below:

Year 5 Supply

After five years, the initial distribution constitutes only 36.2% of the entire token supply. This issuance schedule allows Stargaze to grow and adapt its ownership to new creators, curators, validators, delegators, and other stakeholders.

STARS Issuance

The issuance of STARS tokens is structured to decrease gradually over time, following a model similar to Bitcoin. Unlike Bitcoin's halving events, STARS reduces its token issuance by one-third annually. Each year, the number of new tokens created is reduced to two-thirds of the current issuance until STARS reaches an asymptotic maximum supply of 3 billion.

Inflation Reduction

As part of Proposal 165, inflation was reduced by a factor of 60.9352421%. This specific number was chosen to ensure the supply eventually converges to 3 billion.

Thirding Release Schedule

Each year, the supply of issued STARS reduces by 33%. In year 2, there was an additional reduction in inflation of approximately 60.49% to achieve the 3 billion supply target.

Minting with Alternate Denoms in Marketplace V2

With the release of Marketplace V2 (currently pending as of June 2024), NFTs will also be denominated in other assets such as ATOM, TIA, and USDC. All fees collected in alternate assets will be used to buy back STARS from the open market. Through the Fair Burn mechanism, 50% of the bought-back STARS will be burned, and 50% will be paid out to stakers.

Fair Burn

As mentioned in the Fair Burn page, 50% of all fees are burned and 50% is paid out to stakers. Note that these conditions are subject to governance can be further changed by community vote. The Fair Burn monitor can be viewed here: https://burn.stargaze.zone/

Block Rewards Breakdown

As per the course with proof-of-stake networks, validators (node operators) earn rewards for securing the network. These are rewarded with 80% of new issuance per block. They also accept delegations from token holders, and charge a commission of 5% or greater for providing the service. As of June 2024, there are currently 130 validators.