Astar Foundation, renowned for overseeing the development of Astar Network, has announced a significant token burn event. The organization plans to burn up to five percent of the initial allocation of ASTR tokens, totaling 350 million coins. This move aims to permanently remove these tokens from circulation.
Astar Foundation Initiates Major ASTR Token Burn
The decision follows a governance vote that endorsed the token burn initiative. Maarten Henskens, Head of Astar Foundation, expressed enthusiasm about this development, noting strong community engagement and support for the proposal. He emphasized that this approval reflects the organization’s commitment to fostering a collaborative and decentralized future.
Henskens also highlighted the management’s dedication to shaping the company’s trajectory and setting precedents in blockchain initiatives driven by communities. He extended gratitude to those who contributed and participated in the process.
The proposal was first presented to governance participants for discussion before the vote. With the proposal’s approval, the platform will proceed with the token burn process. The 350 million ASTR coins were originally allocated for the initial phase of Astar’s dApp staking, resulting in rewards worth nearly $70 million in ASRT.
Token Burn Supports Future Community-Focused Initiatives
Currently, the firm plans to transfer these rewards to the Community Treasury on-chain. They will be used to support upcoming community-driven initiatives proposed by builders and users alike. The reduction in circulating ASTR tokens is expected to decrease the overall supply of staked coins, thereby increasing staking rewards to incentivize remaining participants.
This token burn forms a critical part of Astar Foundation’s broader strategy to enhance the tokenomics of ASTR, aiming to allocate more value to the Astar community. The latest dApp staking mechanism of Astar directly distributes staking rewards to both stakers and developers, supporting decentralized applications.