Astar Network Initiates Token Burn
Astar Network, a multi-chain smart contract network, recently made a significant decision to burn 350 million ASTR tokens, which accounts for 5% of the total token supply. This move came after a successful governance vote within the community.
The tokens that were burned were initially intended for Polkadot parachain auctions. However, due to changes in circumstances, particularly the shelving of the Polkadot parachain auctions, Astar Network decided to take action and burn the allocated tokens. As a result of this burn, 70 million ASTR tokens in rewards were generated and are now being transferred to the community treasury for further utilization.
A token burn event like this is often perceived as positive by the market as it reduces the potential supply of tokens available, which can lead to increased value for existing holders. This strategy has been successfully employed by various projects in the crypto space, with notable impacts on token prices.
Following the token burn announcement, ASTR token has shown positive price movement, with an increase of over 7% in the past 24 hours. This performance has outstripped the broader market, as indicated by CoinDesk’s CD20 Index, which only rose by 0.27% during the same period. Additionally, trading volume for ASTR has surged, surpassing $50 million and marking an 84% rise from the previous day, according to CoinMarketCap data.
Earlier this year, Astar Network also entered into a partnership with Polygon, a layer 1 blockchain solution. This collaboration involved the integration of Polygon’s AggLayer, a technology that aims to enhance interoperability between different blockchains through zero-knowledge proofs and the facilitation of unified liquidity.