A surprising move by the Astar Network (ASTR) has caught attention in the crypto community, as they’ve opted to burn a substantial 350 million ASTR tokens, equivalent to 5% of their total supply. This decision, sanctioned through a community governance vote, marks a strategic shift for the altcoin.
Originally earmarked for Polkadot parachain auctions, these tokens have been sitting idle due to Polkadot’s discontinuation of the auction mechanism some time ago. The move to burn these tokens not only eliminates them from circulation but also redistributes the 70 million ASTR rewards accrued from them to the community treasury.
In earlier developments, Astar Network had forged an integration agreement with Polygon to incorporate its AggLayer into the layer 1 blockchain. This integration aims to foster seamless blockchain connectivity and enhance liquidity across platforms using innovative zero-knowledge proofs.
The Astar Foundation views the burning of these reserved tokens as a pivotal step taken since the network’s inception. By reducing the total staked supply, the foundation anticipates enhancing rewards for ASTR holders, thereby stimulating further engagement within the ecosystem.
Additionally, plans are underway to allocate rewards generated from dApp Staking to the on-chain treasury, supporting future initiatives and ventures within the network.
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