Japanese blockchain Astar proposes to burn $38M token
Developers of the Japanese dApp and layer-two solution Aster Network have proposed to burn 350 million ASTR tokens worth $38 million at the time of publication to improve Tokenomics.
“Burning a significant supply of ASTR in the short term will reduce inflation and increase the token's market value,” wrote Maarten Henskens, head of the Aster Foundation. “This immediate impact can boost investor confidence and increase the attractiveness of earning rewards. In the long term, these measures will contribute to a sustainable token economy by correcting early-stage inflation issues and aligning the overall token supply with actual market conditions.”
Next steps include three weeks of open panel discussion, during which community members can understand the foundation's proposal. After that, a week-long community vote will be held to decide the fate of 350 million ASTR tokens, 5% of ASTR's initial supply, from the foundation's reserves. If the proposal passes, the tokens will be burned, and the pooling of rewards will be diverted.
A stock of 350 million ASRR was initially identified on the Polkadot parachain side chains of the Aster launch. However, the inevitable upgrade to Polkadot's network, a parachain system dubbed “Agile Coretime”, backed by public loan auctions, has been removed from the ecosystem.
One user commented: “Nice proposal, burning will act as a rejection mechanism and will be tokens (parachain lease) for a purpose that is now extinct. “Burning will be great as it will help maximize both TVL and stakeholders, a good amount of tokens will come out of circulation, and that is always good for any economy.
In March, Cointelegraph reported that Astar had launched the zkEVM platform, or a zero-knowledge layer-2 blockchain designed to enable cross-chain transactions between the Astar and Polygon blockchains. It is integrated through AggLayer, a protocol that supports multi-chain smart contracts with aggregate zero-knowledge proofs, essentially making the chains appear to work for end users as if they were integrated into a single network.
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