Astar Foundation Burns 350 Million Tokens

Astar Foundation Burns 350 Million Tokens

Hikaru Tanaka
2 min read

Astar Foundation Announces 5% Token Burn and dApp Staking Update

The Astar Foundation has made a significant decision to burn 350 million ASTR tokens, accounting for 5% of the total supply. What's particularly noteworthy is that this move was endorsed by the community through a referendum, underscoring strong support from the stakeholders.

These tokens were originally earmarked for parachain auctions; however, with the evolution of Polkadot's network structure, they have become redundant. This token burn is part of a broader strategy aimed at refining ASTR's tokenomics and creating additional value for the community.

In conjunction with the token burn, Astar is rolling out updates to its dApp staking mechanism in the form of version 3. This new feature has been designed to establish a stable reward system for developers and stakers, nurturing increased involvement and fostering growth within the ecosystem. The overarching goal is to ensure that everyone involved reaps the benefits, thereby sustaining a robust and thriving network.

Key Takeaways

  • Astar Foundation to burn 350 million ASTR tokens, reducing supply by 5%.
  • Token burn approved through community referendum, reflecting decentralized governance.
  • Astar's dApp staking v3 introduces new DeFi designs, enhancing ecosystem rewards.
  • 70 million ASTR rewards from initial staking phase transferred to Community Treasury.
  • Tokenomics revamp aims to increase value and drive growth in the Astar community.


The strategic move by the Astar Foundation to burn 350 million ASTR tokens, alongside the enhancements to dApp staking, signals a deliberate shift aimed at augmenting token value and bolstering ecosystem stability. This initiative, supported through community referendum, reduces the token supply and has the potential to amplify the scarcity of ASTR, thereby potentially increasing its market price. The revamped staking mechanism, version 3, promises more consistent rewards, which in turn, will attract developers and investors. In the short term, ASTR holders could witness immediate gains in value, while in the long run, the ecosystem stands to benefit from heightened engagement and innovation. The primary stakeholders, including token holders, developers, and the broader Polkadot network, are all poised to witness direct and indirect impacts emanating from these strategic adjustments.

Did You Know?

  • Astar Foundation:
    • The Astar Foundation plays a pivotal role in the Astar ecosystem, responsible for the development and management of the Astar network—a smart contract platform supporting multiple blockchains and built atop the Polkadot network.
  • Token Burn:
    • Token burn involves the permanent removal of a specific number of tokens from circulation, thereby reducing the total supply. This can enhance the value of the remaining tokens by creating scarcity, as exemplified by the planned burn of 350 million ASTR tokens by the Astar Foundation.
  • dApp Staking Mechanism:
    • dApp staking is an inherent feature within the Astar network, enabling developers and users to stake their ASTR tokens on decentralized applications (dApps) to earn rewards. The updated version 3 aims to provide a more stable and appealing reward system, fostering greater participation and expansion within the Astar ecosystem.

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