Astar Network Burns 350M Tokens After Community Vote

Multi-chain smart contract network Astar has recently received a boost worth over $400 million and has burnt 350 million ASTR tokens.

The Astar Network, a renowned multichain intelligent contract network, has recently incinerated 350 million ASTR tokens. This event transpired following the community’s approval of the burning proposal on July 2. This action, which accounts for 5% of its genesis allocation, is a significant advancement in optimizing the network’s tokenomics.

It is crucial to acknowledge that these tokens were initially designated for Polkadot parachain auctions, a project that Polkadot has since suspended. The 70 million ASTR will support the Unstoppable Community Grants initiative in rewards generated by the 350 million tokens, which will be deposited in the Community Treasury. The team intends to support innovative initiatives within the Astar ecosystem, promoting growth and development.

In the immediate aftermath of the announcement, ASTR’s market capitalization surged by 20%, surpassing $400 million within the past 12 hours. The token’s value increased by 2%, trading at approximately $0.66. ASTR is currently 88% below its all-time high of $0.3353, achieved in 2022.

The Voting Process

In general, the fire event decreases the total token supply, which may increase the value of the remaining tokens. This is a positive indicator for the ecosystem to promote a more sustainable economy.

As stated in the announcement, the proposition to burn the ASTR tokens was the subject of extensive discussion within the Astar community. The potential advantages and disadvantages of the proposed fire were the subject of debate among community members over two weeks.

The proposal was submitted for a vote after an exhaustive discussion. Over 66 million ASTR were cast in favor of the fire during the one-week voting process.

Regarding Astar Network

Astar Network is a platform dedicated to creating smart contracts for multichain environments. It is a favored location for decentralized applications (dApps) in the Polkadot ecosystem. The Build2Earn network paradigm enables developers to receive rewards for their contributions to the ecosystem through a staking mechanism.

The ecosystem of the Astar Network is perpetually expanding. In March, the blockchain network collaborated with Polygon to incorporate the AggLayer of the layer 1 blockchain. This integration aimed to provide unified liquidity and effectively connect multiple blockchains through zero-knowledge proofs.

The Astar Network’s dedication to assuring long-term sustainability is emphasized by the decision to burn 5% of the Astar genesis allocation. “This strategic move establishes a strong precedent for future initiatives and underscores the significance of community involvement in determining the network’s trajectory as the Astar Network continues to develop,” the announcement reads.