Surprising Altcoin Chooses to Burn Significant Portion of its Total Supply
In a surprising move, the altcoin community has decided to burn a substantial amount of their tokens following a governance vote.
The Astar Network (ASTR), a multi-chain smart contract network, has announced that it will burn 350 million ASTR altcoins, which make up 5% of its total supply. This decision was made after a vote by the altcoin’s cryptocurrency community.
These tokens were originally allocated for Polkadot parachain auctions, a product that Polkadot has discontinued for some time now. The 350 million tokens resulted in 70 million ASTR rewards, and these rewards will now be transferred to the community treasury.
Back in March, Astar Network entered into a partnership with Polygon to integrate the AggLayer of its layer 1 blockchain. This product was created to connect different blockchains and provide unified liquidity using zero-knowledge proofs.
The Astar Foundation sees burning the parachain auction reserve, which was initially allocated during the network’s formation, as an important initiative. Burning the reserve can benefit ASTR holders by reducing the total staked supply, thereby increasing staker rewards.
Additionally, the foundation suggests that ASTR rewards obtained through dApp Staking should be transferred to the on-chain treasury to support future projects.
*Note: This article does not provide investment advice.
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