Astar Foundation to Burn 350 Million ASTR Tokens: Details

As Polkadot (DOT) reconsiders its parachain architecture, Astar Foundation decided to destroy the allocation that served as a parachain reserve. The initiative results in 5% of the ASTR supply being removed from circulation forever. Also, Astar Foundation shared some details of its updated staking mechanism.

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

According to the official statement shared by the Astar Foundation team, 350 million ASTR, a core native cryptocurrency of the Astar ecosystem, will be destroyed forever. The token burn event has been approved by a successful community referendum.

Originally set aside as a parachain auction reserve, the tokens are no longer required for this purpose, following upgrades to Polkadot's (DOT) cross-chain network that have sunsetted its initial parachain system.

The notion of burning 350 million ASTR tokens was put to the Astar community, with governance participants given the opportunity to discuss the proposal and vote for its approval. Having now been ratified, Astar Foundation will proceed with the token burn.

Maarten Henskens, Head of Astar Foundation, shared his excitement about the results of the referendum and the prospects it opens for ASTR's tokenomics:

It's truly inspiring to witness the incredible support and engagement from our community regarding the foundation's proposal. Seeing our vision discussed and embraced by such a passionate group reaffirms our commitment to building a decentralised and collaborative future. Together, we are not just shaping the direction of Astar, but also setting a precedent for community-driven initiatives in the blockchain space.

Prior to the referendum, a reserve was used during the first phase of Astar dApp Staking, generating 70 million in cumulative ASTR rewards in the process. These rewards will now be transferred to the on-chain Community Treasury and used to support future community-focused initiatives proposed by users and builders themselves.

Astar’s dApp staking v3 unlocks new DeFi designs

A massive token burn event is part of Astar Foundation's larger plan to revamp ASTR's tokenomics and ultimately drive greater value for the Astar community.

Astar’s unique dApp staking v3 feature allows builders and communities alike to benefit from a stable reward system for the dApps and projects they build. Staking on a project rewards both the builder and stakers and contributes to the wider health of the ecosystem.

Astar's unique dApp staking mechanism offers support for decentralized applications by distributing staking rewards directly to dApp developers and its stakers. By leveraging innovative staking models and tier systems, Astar ensures fair and substantial rewards, driving continuous growth and engagement within the network.