A Crypto Project Has Surprisingly Decided to Burn 5% of its Supply
Token burning is not such a rare practice, and often some crypto projects, such as Shiba Inu, resort to this strategy to reduce supply and drive price growth by creating scarcity.
Astar Network (ASTR), a multi-chain smart contract platform, will burn 350 million ASTR tokens, which equates to 5% of its total supply. This move is a consequence of the vote of the project community.
The tokens originally reserved for the auctions of Polkadot for parachains, are no longer needed due to Polkadot’s discontinuation of this product. Previously, the 350 million tokens generated 70 million ASTR in rewards, which will now be redirected to the community treasury.
In March, Astar Network partnered with Polygon to integrate its first-layer blockchain AggLayer, with the goal of connecting different blockchains and providing unified liquidity using zero-knowledge proof.
This incineration initiative is seen as a significant step by the Astar Foundation. Reducing the total supply by burning tokens can increase the rewards of ASTR holders.
Additionally, the foundation proposes to transfer dApp staking rewards to the blockchain treasury to support future projects and ventures.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin miner Bitfarms sets vote date on Riot's attempted takeover step
Bitfarms has set Oct. 29 as the date for a special meeting of its shareholders in response to a requisition for a shareholders’ meeting submitted by Riot Platforms.Bitfarms’ shareholders will vote on reconstituting Bitfarms’ board of directors, the latest step in Riot’s attempted takeover of its bitcoin mining rival.
![](https://img.bitgetimg.com/multiLang/image/social/816fac4a491d35aa8ea99ebe67295e101720793557542.jpg)
US lawmakers push for hostage designation in Binance exec’s detention in Nigeria
Quick Take Two U.S. congressmen, Rich McCormick and French Hill, have submitted a resolution to the House Committee on Foreign Affairs, urging the U.S. government to declare the detention of Binance executive Tigran Gambaryan in Nigeria as a hostage situation. The resolution calls for the Nigerian government to immediately release Gambaryan, a U.S. citizen, citing his deteriorating health in Kuje Prison.
![](https://img.bitgetimg.com/multiLang/image/social/4fd47a24d91bd15e3336c094b2c590681720788158554.jpg)
SEC allows certain firms to skirt controversial crypto accounting bulletin
Quick Take Some firms have proposed business practices that the SEC agrees could exempt them from controversial crypto accounting guidance, according to an SEC source. Firms have consulted with the SEC on crypto policies since SAB 121 was released. The SEC allows exemptions with proven procedures and technology for customer crypto recovery in bankruptcies.
![](https://img.bitgetimg.com/multiLang/image/social/6e0939a99d7e95451b0d33cbe47e945e1720788158451.jpg)