Japanese blockchain Astar plans to burn tokens worth $38 million

by Eve Adams

2 years ago

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).

Burning a significant portion of the ASTR supply will reduce inflationary pressure in the short term and potentially increase the market value of the token. This could immediately boost investor confidence and the attractiveness of staking rewards. In the long term, such measures contribute to a more sustainable token economy by addressing inflation issues early and aligning the total token supply with market conditions, noted Maarten Henskens, head of the Astar Foundation.

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.

This is a good proposal. The burn will act as a deflationary mechanism for the tokens intended for a purpose that is now almost extinct (parachain slot rental). Burning would be ideal as it would help increase both TVL and the number of stakers. In the end, this is a large amount of tokens going out of circulation, and that is always good for any economy, commented one user.

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.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Tier I

Requires 25% Tier Progress to Claim

Meme Cache

Tier I

Requires 50% Tier Progress to Claim

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Tier I

Sector: #18291

25%

50%

75%

100%

Tier II

Survivors rescued:

0 / 600

Survivors

0/0

Transmit Signal

Broadcast this sector's coordinates to other rescuers.

Other news

Chainlink Expands CCIP Infrastructure to Avalanche and Polygon

Chainlink has launched its CrossChain Interoperability Protocol (CCIP) on Avalanche and Polygon, enhancing crosschain token transfers.

Gustavo Mendozaan hour ago

Hyperscale Data Ceases Bitcoin Mining to Focus on AI

Hyperscale Data has ceased Bitcoin mining operations at its Michigan facility to accommodate a new AI customer, potentially generating over $12 billion in revenue.

Rajesh Kumar2 hours ago

PONS Token Surges on Robinhood Chain

The PONS token has seen a significant increase in value and market capitalization on the Robinhood Chain, with a price rise to 0.5978 and a market cap exceeding 430 million, marking a 3182% increase in just 24 hours.

Miguel Rodriguez3 hours ago

Ecb Releases New Report on Editorial Standards

The European Central Bank has published a report emphasizing its strict editorial policy that focuses on accuracy, relevance, and impartiality.

Luis Flores3 hours ago

New Report Released Based on Sec Information

A report has been generated based on the information released by Sec. This release aims to inform the public and increase awareness of the information provided.