Astar Foundation, the prominent overseer of Astar Network’s development, has announced a significant token burn. The foundation plans to burn up to five percent of the initial allocation of ASTR tokens, amounting to 350 million coins. This action will permanently remove these coins from circulation.
Astar Foundation Initiates Major ASTR Token Burn
According to the announcement, the decision to proceed with the token burn was ratified through a governance vote. Maarten Henskens, Head of Astar Foundation, expressed enthusiasm about this development, highlighting robust community engagement and support for the proposal.
Henskens emphasized that this endorsement reflects the foundation’s commitment to forging a collaborative and decentralized future. He underscored the management team’s dedication to charting a course forward and setting a precedent for community-driven blockchain initiatives. The official also extended gratitude to all contributors and participants involved.
Before the formal approval, the company presented the proposal for discussion among governance participants. Following its approval, the token burn process will commence. Initially, the foundation utilized 350 million ASTR tokens from its reserves during the early stages of Astar’s dApp staking, generating rewards valued at nearly $70 million in ASRT.
Token Burn Aimed at Boosting Community-Focused Initiatives
Moving forward, the rewards will be transferred to the Community Treasury on-chain. These funds will support future community-driven initiatives proposed by developers and users alike. The reduction of circulating ASTR tokens is expected to decrease the overall supply available for staking, thereby increasing rewards to incentivize remaining participants.
The token burn is a pivotal component of Astar Foundation’s broader strategy to enhance the tokenomics of ASTR. The plan aims to allocate greater value to the Astar community, particularly through its new dApp staking mechanism, which directly distributes rewards to stakers and developers.
