Astar Foundation to Burn 350 Million ASTR Tokens: Details

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As a long-term crypto investor with a keen interest in Polkadot (DOT) and its ecosystem projects, I’m closely following the recent developments at Astar Foundation. The decision to destroy 350 million ASTR tokens, which were originally set aside as a parachain auction reserve, is an intriguing turn of events.

In response to Polkadot (DOT) reevaluating its parachain structure, Astar Foundation chose to eliminate the reserve allocation that previously functioned as a parachain deposit. This action leads to the permanent withdrawal of 5% of ASTR’s total supply from circulation. Additionally, Astar Foundation revealed certain aspects of their revised staking system.

350,000,000 ASTR tokens to be destroyed by Astar Foundation

Based on the information provided by the Astar Foundation team, I understand that approximately 350 million units of the native cryptocurrency ASTR from the Astar ecosystem will be permanently eliminated. This token destruction has been endorsed through a successful community referendum.

The Astar Foundation announced the burning of 350 million ASTR tokens, equating to 5% of the total initial supply that was minted at the genesis event. This action came about as a result of a highly supportive community vote in our recent governance process. Keep reading for further details.

— Astar Network (@AstarNetwork) July 2, 2024

As an analyst, I would rephrase it as follows: I originally assumed that these tokens were earmarked for a reserve in the parachain auction process of the Polkadot (DOT) network. However, with the recent advancements and upgrades to the cross-chain system, which have phased out the initial parachain setup, the need for these tokens in this capacity no longer exists.

The idea of destroying 350 million ASTR tokens was proposed to the Astar community, allowing governance members to debate and cast their votes on the matter. With the proposal now officially passed, the Astar Foundation intends to carry out the token burn.

Maarten Henskens, the Head of Astar Foundation, expressed his elation over the outcomes of the referendum and the potential benefits it brings to ASTR’s token economics.

As a researcher involved in this project, I’m thrilled to observe the remarkable enthusiasm and participation from our community towards the foundation’s proposal. The way our vision is being debated and endorsed by this passionate group gives us renewed confidence in our mission to create a decentralized and collaborative future for Astar. By working together, we’re not just defining Astar’s path but also setting an example for community-driven initiatives within the blockchain industry.

Before the referendum, a reserve was employed during the initial stage of Astar dApp Staking, resulting in an accrual of 70 million ASTR rewards. These rewards are now set to be moved into the on-chain Community Treasury for the purpose of financing future community-driven projects suggested by users and developers alike.

Astar’s dApp staking v3 unlocks new DeFi designs

A significant token destruction occasion, which is a key component of Astar Foundation’s strategy, aims to overhaul ASTR’s token economic model and consequently generate more worth for the Astar network’s users.

With version 3 of Astar’s distinctive dApp staking feature, creators and communities can reap the rewards of their dApps and projects in a stable manner. By staking on a project, both the builder and stakeholders are remunerated, thereby promoting a thriving ecosystem.

As a researcher exploring the blockchain landscape, I’m particularly intrigued by Astar’s groundbreaking dApp staking mechanism. This approach empowers both dApp developers and stakers by funneling staking rewards straight to the former. By harnessing advanced staking models and tiered systems, Astar guarantees equitable and generous rewards, thereby fostering consistent expansion and involvement within its network.

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2024-07-03 16:15