Astar Network, formerly known as Plasm Network, is emerging as a pivotal player in the Polkadot ecosystem. Designed to serve as a multi-chain hub for decentralized applications (dApps), Astar enables seamless interoperability between Polkadot and various Layer 1 blockchains. With its robust infrastructure supporting DeFi, NFTs, and DAOs, Astar aims to become the leading smart contract platform across chains.
Backed by Binance Labs in its initial $2.4 million funding round—the first investment from Binance’s $10 million Polkadot-focused fund—Astar has quickly gained momentum. The project has already locked 150,000 ETH through lockdrops, built a community of over 30,000 members, and integrated with more than 40 ecosystem partners. These milestones underscore its commitment to driving innovation and adoption in the multi-chain future.
How Astar Network Works
Astar Network operates as a Substrate-based blockchain and functions as a key scalability and interoperability solution within the Polkadot network. Since Polkadot’s relay chain does not natively support smart contracts, Astar fills this critical gap by enabling developers to build scalable dApps and deploy Layer 2 solutions such as rollups and state channels.
As a permissionless public blockchain, Astar welcomes developers from around the world to create innovative applications that leverage its high-performance infrastructure. This open-access model fosters a vibrant ecosystem where new ideas can thrive without gatekeeping.
One of Astar’s standout features is its unique approach to rewarding contributors. Unlike traditional blockchains like Bitcoin or Ethereum, which allocate block rewards solely to miners or validators, Astar distributes rewards more inclusively. Specifically, 50% of block rewards go to validators, while the remaining 50% are allocated to dApp developers who contribute value to the network.
👉 Discover how developers are earning rewards on next-gen blockchain platforms.
This dual-incentive model ensures that both network security and application innovation are equally prioritized. Furthermore, Astar introduces a Smart Contract Staking mechanism, where users can nominate and stake on dApps they believe in. The top-nominated dApps receive an additional 20% of the total block reward, distributed among their developers. This creates a powerful feedback loop: as more users stake on a dApp, its developers earn more, incentivizing continued improvement and engagement.
Operators managing these staked contracts can also earn semi-permanent rewards, enhancing long-term sustainability for high-performing applications.
Shiden Network: Astar’s Canary Chain
Before launching on Polkadot, projects often test their technology on Kusama—a live, experimental canary network that mirrors Polkadot’s architecture but with faster iteration cycles. Astar’s counterpart on Kusama is Shiden Network, which serves as a proving ground for new features and upgrades.
Shiden allows developers to experiment with cross-chain messaging, smart contract deployment, and Layer 2 integrations in a real-world environment before migrating to Astar. This dual-chain strategy reduces risk and accelerates innovation, giving teams the confidence to build complex applications with battle-tested tools.
The success of Shiden has directly contributed to Astar’s stability and feature set, making it one of the most well-prepared parachains in the Polkadot ecosystem.
ASTR Token: Utility and Economics
The native token of Astar Network, ASTR, plays a central role in securing the network and powering its ecosystem. It has four primary use cases:
- dApp rewards: Developers earn ASTR through smart contract staking and performance incentives.
- Transaction fees: Users pay fees in ASTR for executing operations on the network.
- Governance: Token holders can vote on protocol upgrades and treasury allocations.
- Staking: Validators stake ASTR to participate in consensus and earn rewards.
With a total supply capped at 7 billion ASTR, approximately 2 billion tokens are currently in circulation. As of early 2025, ASTR ranks among the top 250 cryptocurrencies by market capitalization, with a valuation hovering around $211 million**. At a price of **$0.106 per token, it remains significantly below its all-time high of $0.2781 reached during the previous bull cycle—a sign of potential upside as adoption grows.
While the token has experienced downward pressure post-launch, this is common for early-stage projects entering public markets. What sets ASTR apart is its strong fundamentals: strategic funding, active development, and growing ecosystem support.
In January 2022, Astar secured $22 million in strategic funding from top-tier investors including Polychain Capital, Alameda Research, Crypto.com Capital, GSR, and Injective Protocol. This financial backing has enabled rapid expansion and technical refinement.
Ecosystem Growth and Developer Incentives
To accelerate dApp development and liquidity provision, Astar launched the $100 million Astar Boost Program in February 2022. This initiative provides financial support, grants, and incentive programs for developers building on the network.
The Boost Program has already empowered key projects such as:
- ArthSwap: A decentralized exchange offering low-slippage trades across chains.
- PolkaEx: A cross-chain trading platform enhancing asset interoperability.
- Celer cBridge: A multi-chain asset bridge enabling fast token transfers between ecosystems.
These integrations strengthen Astar’s position as a true multi-chain hub, allowing users to move assets and data freely across networks like Ethereum, Binance Smart Chain, and others.
👉 Learn how blockchain projects are fueling developer innovation with incentive programs.
By aligning economic incentives with ecosystem growth, Astar ensures sustainable development beyond initial hype.
Frequently Asked Questions (FAQ)
Q: What is Astar Network used for?
A: Astar Network is a multi-chain smart contract platform built for Polkadot. It enables developers to build scalable dApps that interact across multiple blockchains, supporting use cases in DeFi, NFTs, gaming, and DAOs.
Q: How does Astar differ from Ethereum?
A: Unlike Ethereum, Astar offers native cross-chain interoperability through Polkadot’s XCMP protocol and rewards dApp developers directly through its unique staking mechanism—something Ethereum does not currently provide.
Q: Can I stake ASTR tokens?
A: Yes. You can stake ASTR either as a validator or by participating in smart contract staking, where you nominate promising dApps and earn rewards based on their performance.
Q: Is Astar part of the Polkadot network?
A: Yes. Astar is a parachain on Polkadot, meaning it benefits from shared security and seamless communication with other parachains via the relay chain.
Q: What is the maximum supply of ASTR?
A: The total supply of ASTR is capped at 7 billion tokens. This fixed supply helps maintain scarcity and long-term value accrual as demand increases.
Q: How can developers get funding on Astar?
A: Through the $100 million Astar Boost Program, developers can apply for grants, liquidity incentives, and technical support to launch and scale their projects.
Final Thoughts
Astar Network represents a bold step toward a truly interconnected blockchain future. By combining multi-chain compatibility, developer-first incentives, and strong institutional backing, it positions itself as a core pillar of the Polkadot ecosystem.
While still in its growth phase, Astar’s technological foundation and community-driven model suggest significant long-term potential. As cross-chain interoperability becomes increasingly essential, platforms like Astar will play a crucial role in shaping the next generation of decentralized applications.
Whether you're a developer seeking new opportunities or an investor exploring emerging ecosystems, Astar offers compelling reasons to engage now.
👉 Explore how multi-chain networks are redefining the future of decentralized applications.