Astar Foundation, the lead organization for Astar Network development, has announced a token burn, which will permanently remove 5% of the ASTR genesis allocation, comprising 350M ASTR tokens.
The tokens were originally set aside as a parachain auction reserve, but are no longer required due to upgrades to Polkadot. The Astar Foundation’s proposal was ratified after a governance vote, and the 350M ASTR reserve was used during the first phase of Astar dApp Staking, generating 70M in ASTR rewards. These rewards will now be transferred to the on-chain Community Treasury to support future community-focused initiatives.
The removal of 350M ASTR from circulation will benefit the Astar community by decreasing the total supply of staked tokens and increasing staking rewards available to other users.
According to the team, this token burn is part of Astar Foundation’s larger plan to revamp ASTR’s tokenomics and drive greater value for the Astar community. Astar’s unique dApp staking v3 feature allows builders and communities to benefit from a stable reward system for their dApps and projects.
The staking mechanism supports decentralized applications by distributing staking rewards directly to developers and stakers, ensuring fair and substantial rewards, driving continuous growth and engagement within the network.
