Japanese blockchain Astar plans to burn tokens worth $38 million

Japanese blockchain Astar plans to burn tokens worth $38 million

user avatar

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 Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

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

Other news

MEXC Launches 'Trading Takes Two' Campaign to Showcase AI Capabilities

MEXC is launching a month-long campaign titled 'Trading Takes Two' to showcase how MEXC AI supports users in their trading journey.

user avatarTenzin Dorje

HTX Research Highlights Risks in Stock-Linked Memecoins

HTX Research's report highlights the risks of stock-linked memecoins, focusing on misleading high APY figures and the importance of understanding market conditions.

user avatarBayarjavkhlan Ganbaatar

HTX Research Unveils Insights on Stock-Linked Memecoins

HTX Research has released a report on stock-linked memecoins, analyzing their market structure and growth potential.

user avatarMohamed Farouk

BAI Builds Closed-Loop Infrastructure for the Agent Economy

BAI is building a closed financial loop for the agent economy, integrating models and agents to facilitate seamless transactions.

user avatarDiego Alvarez

BAI Sets New Industry Record with 151 Trillion Tokens Daily Throughput

BAI has set a new industry record with a daily throughput of over 151 trillion tokens, marking a significant increase since its launch.

user avatarElias Mukuru

Justin Sun Prize Launched to Transform Scientific Research

The Justin Sun Prize has been established to redefine scientific rewards in the AI era, offering up to $1 million for breakthroughs in fundamental disciplines and machine formal verification.

user avatarKenji Takahashi

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.