Astar Network Proposes Major Burn of 5% Total Supply

Astar Network (ASTR) has announced a significant proposal to burn 350 million ASTR, equivalent to 5% of its total supply, valued at approximately $32 million.

Voting on the proposal will begin three weeks after submission, with potential benefits including increased staking rewards for ASTR holders. Explore the details and implications of this major ASTR burn proposal.

Burning 350 Million ASTR Worth Approximately $32 Million

On June 4, 2024, Astar Network (ASTR) announced a proposal to burn 350 million ASTR, equivalent to 5% of its total supply.

Burning refers to the process of sending a specific cryptocurrency to an unusable wallet, effectively reducing its total supply. This reduction is expected to increase the scarcity and potentially raise the value of each remaining token.

The proposal includes burning ASTR worth approximately $32 million, as reported by Sota Watanabe, the leader of Astar Network. If the proposal is approved, the burn will be executed as planned.

Overview of the ASTR Burn Proposal

The burn proposal was introduced following an upgrade to Polkadot (DOT), which rendered the ASTR allocated for parachain auctions unnecessary. (Parachains are independent blockchains that connect to Polkadot.)

The ASTR to be burned will come from the reserve funds initially set aside for parachain auctions. Reducing the total supply will increase staking rewards, potentially benefiting ASTR holders and stakers.

Voting on the burn proposal will begin three weeks after the proposal’s submission. If there is consensus, the burn will proceed. If not, discussions and voting on alternative plans will be considered.

Additionally, the Astar Foundation has proposed transferring ASTR rewards generated through dApp staking to the on-chain treasury.

Details and discussions on the ASTR burn proposal can be found here.