Astar Network Token Burn and Impact on Tokenomics
On July 8, Japan's renowned smart contract platform, Astar Network, initiated the burning of 350 Million Astar (ASTR) tokens following the community's endorsement. This strategic decision altered the Astar Network Tokenomics by reducing the total token supply by 5%.
The announcement of the token burn was disseminated by the platform through various mediums including blog posts.
The network's choice to burn the specified tokens on July 2 was driven by the objective to elevate the token's value and enhance Astar Network Tokenomics. The tokens, previously allocated for Parachain auctions, were deemed unnecessary due to the Polkadot system update. The elimination of these tokens is anticipated to heighten staking rewards for the decentralized application (dApp) community.
Significance of ASTR Token Burn
Token burns are generally viewed as positive occurrences in the cryptocurrency realm. By decreasing the overall token supply, the scarcity of remaining tokens can potentially lead to an increase in value.
The community of Astar showed solidarity with the network's proposal to burn 350 Million ASTR tokens from the parachain reserve. This strategic move by Astar Network is likely to induce a deflationary impact, thereby augmenting the value of the existing tokens and enhancing staking rewards.
The primary objective behind this action is to combat inflation, elevate market value, and establish a sustainable token economy, underscoring Astar's commitment to progress and community welfare.
Astar Network Tokenomics and Price
As per CoinMarketCap, the ASTR token possesses a total supply of 8,159,136,198 with a circulating supply of 6,140,843,400. The revised Astar Network Tokenomics incorporates token allocations for users & early supporters, On-chain DAO, Parachain auction, Protocol development, marketing, foundation, team, and early financial partners.
Over the last 7 days, the ASTR token observed a 7.20% decline, falling from $0.07105 on July 1 to $0.0585 on July 8. However, the news of the token burn propelled the token value to $0.06531, registering a 1.86% surge in a day, with a market cap of $401,535,303 and a 24-hour volume of $52,363,675.
If the current market conditions persist favorably, the crypto sphere may witness an upsurge in the ASTR token price.
Final Thoughts
The strategic burning of 350 Million ASTR tokens by Astar Network, resulting in a 5% reduction in the total token supply, represents a significant stride in fortifying its tokenomics. This initiative is anticipated to instigate a deflationary effect, potentially boosting the value of ASTR tokens and augmenting staking rewards. It underscores Astar's commitment to fostering a sustainable token economy and amplifying community growth.
