Coinspeaker Astar Network Burns 350M ASTR Tokens Following Community Vote
Renowned multi-chain smart contract network, the Astar Network, has recently burned 350 million ASTR tokens. This event comes after its community approved the burning proposal on July 2. This action, representing 5% of its genesis allocation, marks an important step in optimizing the network’s tokenomics.
It is important to note that these tokens were initially set aside for Polkadot parachain auctions, a project that Polkadot has since put on hold. The 350 million tokens generated 70 million ASTR in rewards, which will now be staked on the Community Treasury to support the Unstoppable Community Grants initiative. With this move, the team aims to fund innovative projects within the Astar ecosystem, fostering growth and development.
Following the announcement, the market capitalization of ASTR experienced a significant boost, climbing above $400 million, which is a 20% increase within the last 12 hours. The token saw a 2% increase in its value, trading around $0.66. ASTR stands 88% down from its all-time high of $0.3353, achieved in 2022.
The Voting Process
Generally, the burn event reduces the total token supply, thereby potentially increasing the value of the remaining tokens. This is considered a bullish sign for the ecosystem for a more sustainable economy.
As per the announcement, the proposal to burn the ASTR tokens was a subject of extensive discussion within the Astar community. Over a two-week period, community members engaged in debates, weighing the potential benefits and drawbacks of the proposed burn.
After a thorough discussion, the proposal was put to a vote. The voting process lasted for one week, with over 66 million ASTR cast in favor of the burn.
About Astar Network
Astar Network is a platform focused on the development of smart contracts for multichain environments. It is a popular hub for decentralized applications (dApps) within the Polkadot ecosystem. The network’s Build2Earn model allows developers to earn rewards via a staking mechanism for their contributions to the ecosystem.
The Astar Network is constantly expanding its ecosystem. In March, the blockchain network joined hands with Polygon to integrate the layer 1 blockchain’s AggLayer. This integration aimed to connect multiple blockchains using zero-knowledge proofs and offer robust unified liquidity.
The decision to burn 5% of the Astar genesis allocation underscores Astar Network’s commitment to ensuring long-term sustainability. “As the Astar Network continues to evolve, this strategic move sets a strong precedent for future initiatives and reinforces the importance of community involvement in shaping the network’s trajectory,” the announcement states.
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Astar Network Burns 350M ASTR Tokens Following Community Vote
