Token burning is not a rare practice, and some cryptocurrency projects (such as Shiba Inu) often adopt this strategy to reduce supply and drive price growth by creating scarcity.
Astar Network (ASTR), a multi-chain smart contract platform, will burn 35 billion ASTR tokens, equivalent to 5% of its total supply. The result of this measure is a community vote.
The initially reserved tokens for auction will now be redirected to the community treasury as Polkadot, the parallel chain, no longer requires them due to Polkadot’s discontinuation of the product. Previously, these 35 billion tokens generated 700,000 ASTR rewards, which will now be redirected to the community treasury.
In March, Astar Network integrated its Layer 1 blockchain, AggLayer, with Polygon, aiming to connect different blockchains and provide unified liquidity using zero-knowledge proofs.
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The token burning measure is considered an important step by the Astar Foundation. Reducing the total supply through token burning can increase rewards for ASTR holders.
Additionally, the foundation proposes transferring dApp staking rewards to the blockchain treasury to support future projects and enterprises.
