Astar Network Announces Proposal to Destroy 5% of ASTR Tokens!

Key Points:

• Astar Network proposes burning 350 million ASTR tokens (5% of its genesis allocation) to adapt to Polkadot’s Agile Coretime upgrade, aiming to boost staker rewards and benefit ASTR holders.
• The Astar Foundation plans to transfer 74 million ASTR tokens, valued at $6.5 million, to the on-chain treasury to fund future projects and drive innovation.
• A three-week discussion period will precede a community vote to decide on the proposal’s execution, highlighting the network’s commitment to participatory governance.

Astar Network has unveiled a proposal to destroy 5% of its genesis allocation of ASTR tokens, amounting to approximately 350 million tokens worth around $38 million.

This bold step is aimed at adapting to the forthcoming Agile Coretime upgrade of the Polkadot network, which will gradually phase out the crowd-lending concept.

The proposal outlines a strategic reduction in the total supply of staked tokens, which is anticipated to increase staker rewards and provide substantial benefits to ASTR holders. By decreasing the available supply, the Astar Foundation aims to create a more rewarding environment for those staking their tokens, enhancing the overall value proposition of holding ASTR.

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Significant Funds Allocated for Future Development

Astar Foundation has proposed transferring 74 million ASTR (valued at about $6.5 million) generated through dApp Staking to the on-chain treasury. These funds are earmarked to support future development projects, ensuring the continued growth and innovation within the Astar ecosystem.

This proposal marks a pivotal moment for Astar Network as it navigates the evolving landscape of the Polkadot ecosystem. The potential destruction of 350 million ASTR tokens signifies a strategic effort to enhance the network’s value and ensure its long-term success. Community members are encouraged to participate actively in the discussion and voting process to shape the future of Astar Network.