Astar Network to Burn 5% of Supply, Boosting Token Value and Staker Rewards

In a surprising move, the Astar Network community has voted to burn a significant portion of its ASTR tokens. This decision aims to reduce the circulating supply, increase the value of ASTR tokens, and enhance rewards for stakers.

Astar Network (ASTR), a multichain smart contract platform, will burn 350 million ASTR tokens, representing 5% of its total supply. This decision follows a community governance vote and is expected to have a positive impact on ASTR token holders.

The tokens earmarked for burning were initially allocated for Polkadot parachain auctions, a product that has since been discontinued by Polkadot. The burning process will effectively remove these tokens from circulation, reducing the overall supply and potentially increasing the value of remaining ASTR tokens.

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Token burning is a common strategy employed by cryptocurrency projects to reduce the circulating supply and enhance token value. By burning tokens, the project can artificially increase the scarcity of its tokens, making them more attractive to investors.

In the case of Astar Network, burning 350 million ASTR tokens is expected to:

Increase ASTR token value: By reducing the circulating supply, the burn can potentially drive up the price of ASTR tokens.

Enhance staker rewards: With a reduced circulating supply, the rewards for staking ASTR tokens become more valuable. This can incentivize more users to stake their tokens, further supporting the network’s security.

In addition to burning 350 million ASTR tokens, the Astar Foundation also proposes transferring 70 million ASTR tokens generated from dApp Staking to the on-chain treasury. These funds will be allocated to support future development projects and initiatives within the Astar ecosystem.

This move demonstrates the Astar Foundation’s commitment to long-term growth and sustainability. By allocating funds to the treasury, the foundation ensures that the network has the resources it needs to continue innovating and expanding its reach.