Multi-chain smart contract network Astar Network (ASTR) announced that it will burn 350 million ASTR altcoins, which constitute 5% of its total supply. This decision came after a governance vote by the altcoin's cryptocurrency community.
The tokens in question were initially allocated for Polkadot parachain auctions, a product that has been discontinued by Polkadot for some time. 350 million tokens brought 70 million ASTR rewards, and these rewards will now be transferred to the community treasury.
Earlier in March, Astar Network had struck a deal with Polygon to integrate the AggLayer of its layer 1 blockchain. This product was designed to connect various blockchains and provide unified liquidity using zero-knowledge proofs.
Astar Foundation is considering this important initiative to burn the parachain auction reserve initially allocated during the formation of the network.
Burning the reserve can benefit ASTR holders by reducing the total staked supply, thereby increasing staker rewards.
The foundation also proposes that ASTR rewards obtained through dApp Staking be transferred to the on-chain treasury to fund future ventures.
*This is not investment advice.