Astar Network’s Proposal to Burn 350 Million ASTR Approved: 5% of Total Supply to Be Removed

Astar Network (ASTR) has successfully approved a proposal to burn 350 million ASTR, equating to 5% of its total supply.

This move aims to reduce the supply, potentially increasing the value of each coin.

Additionally, the burn is set to boost staking rewards for dApp participants, marking a significant development for the network’s ecosystem. Discover the details and implications of this strategic decision.

Understanding Cryptocurrency Burning and Its Impact

Astar Network (ASTR) announced on July 3, 2024, that a proposal to burn 350 million ASTR, equivalent to 5% of the total supply, has been approved.

Burning refers to the act of sending a specific cryptocurrency to a wallet that can never be used again, rendering it unusable and reducing the supply. This reduction in supply is expected to increase the value of each remaining coin due to heightened scarcity.

The ASTR burn was scheduled to be implemented in alignment with the system updates of Polkadot (DOT), which made this amount of ASTR unnecessary.

The official approval of this proposal has been confirmed, and preparations for executing the burn are now underway.

Implications for Astar Network’s dApp Staking Rewards

The disposal of these 350 million ASTR is anticipated to result in increased staking rewards for the dApp staking programs active on Astar Network.

The network has already launched Season 2 of dApp staking, and some projects have announced plans to airdrop tokens to contributors participating in staking activities.

The burn and subsequent increase in staking rewards are expected to enhance the attractiveness of participating in the Astar Network ecosystem, potentially driving further engagement and growth.