The tokens were initially reserved for a parachain slot on Polkadot but have since fallen out of use.
Developers of Japanese dApp and layer-two solution Astar Network are proposing to burn 350 million ASTR tokens, worth $38 million at the time of publication, to improve its tokenomics.
"In the short term, burning a significant portion of the ASTR supply will reduce inflationary pressures and potentially increase the token’s market value," wrote Maarten Henskens, head of Astar Foundation. "This immediate impact can boost investor confidence and enhance the attractiveness of staking rewards. In the long term, these measures contribute to a more sustainable token economy by correcting early-stage inflation issues and aligning the total token supply with realistic market conditions."
The next steps include a three-week open panel discussion, during which community members can chime in on the foundation's proposal. Thereafter, a week-long community vote will be held to determine the fate of the 350 million ASTR tokens, accounting for 5% of ASTR's initial supply, from the foundation's reserves. If the proposal passes, the tokens will be burned, and staking rewards reallocated.
