Astar Network Burns 350 Million ASTR Tokens

Astar Network to Burn 350 Million ASTR Tokens

Astar Network, a multi-chain smart contract network, has recently announced its decision to burn 350 million ASTR tokens, which accounts for 5% of its total supply. The token burn was initiated following a governance vote within the network.

The 350 million ASTR tokens were originally designated for Polkadot parachain auctions. However, as Polkadot has since shelved this feature, the tokens will now be burned. This move is expected to have a positive impact on the market as token burns typically reduce the overall token supply, potentially leading to a bullish trend.

Following the token burn, 70 million ASTR tokens, which were generated as rewards from the burned tokens, will be transferred to the community treasury. This transfer aims to benefit the community and enhance the network’s ecosystem.

One notable example of the positive effects of token burns is the popular meme coin Floki, which experienced a 70% price rally after conducting a token burn last year.

ASTR token has shown resilience in the market, with a more than 7% increase in value over the past 24 hours, outperforming the CoinDesk CD20 Index. The trading volume for ASTR has also surged, surpassing $50 million, indicating a growing interest in the token.

In a strategic move, Astar Network recently partnered with Polygon to integrate the layer 1 blockchain’s AggLayer technology. This integration aims to connect various blockchains using zero-knowledge proofs and provide a seamless experience for users across different networks.