The developers of the Japanese second-layer blockchain platform Astar Network propose to burn 350 million ASTR tokens, worth $38 million at the time of publication, to improve the tokenomics of their blockchain for decentralized applications (dApp).
The next steps include a three-week discussion period during which community members can express their opinions on the foundation's proposal. This will be followed by a one-week community vote to decide the fate of the 350 million ASTR tokens from the foundation's reserves, which accounts for 5% of the initial ASTR supply. If the proposal is approved, the tokens will be burned, and staking rewards will be redistributed.
Initially, the reserve of 350 million ASTR was intended for the launch of the Astar parachain on Polkadot. However, the upcoming Polkadot network upgrade called "Agile Coretime" will lead to the removal of the parachain ecosystem funded by crowdloan auctions.
In March, it was reported that Astar launched its zkEVM platform, a second-layer blockchain based on zero-knowledge proofs, designed to ensure cross-chain transactions between Astar (ASTR) and Polygon (MATIC) blockchains. This integration is implemented through AggLayer, a protocol supporting multi-network smart contracts via aggregate zero-knowledge proofs, allowing blockchains to "perceive as one" for end users.
