Astar Network, a prominent multi-chain smart contract platform, has eliminated 350 million ASTR tokens (5% of total supply) through a burning process. This action, approved by the Astar community in a recent vote, signifies a significant step towards optimizing the network’s tokenomics.
The burned tokens were originally allocated for Polkadot parachain auctions, a feature currently on hold by Polkadot. By removing these unused tokens, Astar aims to create a more sustainable economic model for the network. Additionally, 70 million ASTR generated from the burned tokens will be staked within the Community Treasury to fuel the Unstoppable Community Grants program. This initiative is designed to provide financial backing to innovative projects within the Astar ecosystem, fostering long-term growth and development.
Following the announcement, the market capitalization of ASTR surged by 20% within 12 hours, surpassing $400 million. The token’s value also experienced a modest 2% increase, reaching around $0.66. However, it’s important to note that ASTR currently sits 88% below its all-time high of $0.3353, set in 2022.
Community Driven Decision
The token burn initiative reflects Astar’s commitment to a community-driven approach. A two-week discussion period preceded the vote, allowing community members to weigh the proposal’s merits. This transparent process resulted in overwhelming support, with over 66 million ASTR votes cast in favor of the burn.
A Look at Astar Network
Astar Network empowers developers to build smart contracts compatible with multiple blockchains. It serves as a popular destination for decentralized applications (dApps) within the Polkadot ecosystem. The platform’s Build2Earn model incentivizes developers through a staking mechanism that rewards them for their contributions to the network.
Also Read: $COOKIE, the Cookie3 MarketingFi Ecosystem Token, will Launch on ChainGPT Pad and Polkastarter
Astar Network is actively expanding its reach. In March, a collaboration with Polygon aimed to integrate AggLayer, a layer 1 blockchain solution, into the Astar Network. This integration facilitates connections between various blockchains using zero-knowledge proofs, ultimately offering a more robust and unified liquidity landscape.
The burning of 5% of the genesis allocation signifies Astar Network’s dedication to long-term viability. As stated in the official announcement, “this strategic move sets a strong precedent for future initiatives and reinforces the importance of community involvement in shaping the network’s trajectory.”
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
