In a move aimed at improving its token economics, the developers behind Japanese dApp and layer-two solution Astar Network have proposed a significant token burn. The plan involves burning 350 million ASTR tokens, valued at $38 million at the time of publication.
According to Maarten Henskens, head of Astar Foundation, the proposed token burn is expected to reduce inflationary pressures in the short term, potentially leading to an increase in the token’s market value. This move could enhance investor confidence and make staking rewards more attractive. In the long run, the initiative is intended to address early-stage inflation issues and align the total token supply with realistic market conditions, thereby contributing to a more sustainable token economy.
The proposal will undergo a three-week open panel discussion to allow community members to provide feedback. Subsequently, a week-long community vote will be conducted to decide the fate of the 350 million ASTR tokens, which constitute 5% of the token’s initial supply from the foundation’s reserves. If approved, the tokens will be burned, and staking rewards will be reallocated accordingly.
