As Polkadot (DOT) reviews its parachain architecture, the Astar Foundation has decided to cancel the parachain reserve allocation, resulting in 5% of the supply of ASTR – the core native token of the Astar ecosystem – being removed from circulation forever.
Additionally, the Astar Foundation shared some details about its updated staking mechanism.
350,000,000 ASTR tokens will be burned
According to the official statement shared by the Astar Foundation team, 350 million ASTR will be burned after receiving approval from the community.
Originally intended for parachain auction reserves, the tokens are no longer needed for this purpose after Polkadot (DOT) upgraded its crosschain network resulting in the decommissioning of the original parachain system.
The idea of burning 350 million ASTR tokens was put to a public vote by the Astar community, with governance participants given the opportunity to discuss the proposal and vote for approval. Once approved, the Astar Foundation will proceed with the token burn.
🔥 350M ASTR Burn Proposal Passes!
📣 The Astar Foundation has declared a token burn of 350 million ASTR, which is 5% of the initial token supply allocated at genesis. This decision was made following an overwhelming approval in a recent governance vote.
Read on for more… pic.twitter.com/6bDDsNeuEj— Astar Network (@AstarNetwork) July 2, 2024
Maarten Henskens, Director of the Astar Foundation, shared his excitement about the results of the referendum and the prospects it opens up for ASTR’s tokenomics:
“It is hard to put into words to witness the incredible engagement and support from the community for the Foundation’s proposal. The fact that the proposal was enthusiastically discussed and accepted by the community reaffirms our commitment to building a decentralized and collaborative future. Together, we are not only 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 in the first phase of Astar dApp Staking, generating 70 million ASTR rewards in the process. These rewards will now be transferred to the onchain Community Treasury and used to support future community-focused initiatives proposed by users and developers themselves.
Astar’s dApp v3 staking unlocks new DeFi designs
The large-scale token burn event is part of the Astar Foundation’s larger plan to reform ASTR’s tokenomics and ultimately bring greater value to the Astar community.
Astar’s unique dApp v3 staking feature allows both builders and the community to benefit from a stable reward system for the dApps and projects they build. Staking into a project rewards both builders and stakers, while contributing to the overall health of the ecosystem.
Astar’s unique dApp staking mechanism provides support for decentralized applications by distributing staking rewards directly to dApp developers and stakers. By leveraging innovative staking models and hierarchy, Astar ensures fair and significant rewards, promoting continuous growth and interaction within the network.
Itadori
According to U.today
