Astar surges amid proposal to burn 350M ASTR tokens
Astar Network (ASTR) price jumped nearly 5% after the Astar Foundation published a proposal to burn 350 million ASTR tokens.
ASTR price reached higs of $0.09.
Astar Network (ASTR) price flipped positive and surged nearly 5% on Tuesday following a new proposal seeking to burn millions of the tokens.
While ASTR continues to struggle with the bearish pressure seen since price hit highs near $0.17 in March, its gains over the last 24 hours have pushed it above $0.09 and could open up a bullish run to $0.1.
Astar Foundation proposes 350 million ASTR token burn
ASTR’s sudden price surge followed a new announcement from the Astar Foundation. On Tuesday, the Astar Network team outlined a proposal that seeks to burn 350 million ASTR tokens.
As often happens across the market, prices reacted higher amid reaction to the proposal. If adopted in coming weeks, the proposal will see Astar remove tokens worth $31 million from circulation.
The burn would account for 5% of the genesis allocation, the foundation noted in its proposal. Astar Network founder Sota Watanabe shared this news on X.
In particular, the tokens to be burned are from the project’s parachain auction reserve. The platform set these tokens aside during Astar Network’s genesis deployment.
When is the Astar Network community vote?
Astar is looking to take this action ahead of the Polkadot’s ‘Agile Coretime’ upgrade, which is set to phase out DOT’s crowdloan mechanism.
According to the proposal, burning these reserve tokens may boost ASTR holders through a reduction in total staked supply. It would mean increased rewards for stakers. Also likely to come out of this is the potential for decreased supply to impact ASTR’s future price.
Astar Foundation says the proposal will go through a three-week community discussion phase before it goes to a vote.
“If there is a consensus, the foundation will proceed to burn the reserve. If not, alternative solutions will be considered for further discussion and voting,” the team wrote.
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