Following the release of a fresh plan to burn millions of Astar Network (ASTR) tokens, the price of the token turned positive and increased by around 5% on Tuesday.
Although ASTR's price has been under bearish pressure since it reached highs close to $0.17 in March, its advances over the past day have lifted it over $0.09, perhaps paving the way for a bullish run above $0.1.
The Astar Foundation suggests burning 350 million ASTR tokens
The Astar Foundation released a fresh statement shortly after the unexpected price increase of ASTR. The Astar Network team presented a plan on Tuesday that calls for burning 350 million ASTR tokens.
Prices increased in response to the suggestion, as is common in the market. Should the idea be approved in the upcoming weeks, Astar will take $31 million worth of tokens out of circulation.
As the foundation pointed out in its proposal, the burn would represent 5% of the genesis allocation. Sota Watanabe, the creator of Astar Network, announced this on X.
Specifically, the tokens that are going to be burned come from the parachain auction reserve of the project. These tokens were placed aside by the platform during the original deployment of Astar Network.
When is the community vote for Astar Network held?
Prior to Polkadot's "Agile Coretime" upgrade, which is scheduled to phase out DOT's crowdloan mechanism, Astar is considering to take this move.
The suggestion suggests that destroying these reserve tokens could benefit ASTR holders by lowering the overall amount of tokens staked. Increased staker payouts would result from it. The possibility that a reduction in supply will affect the price of ASTR in the future is another plausible outcome of this.
According to the Astar Foundation, the idea will be subject to a three-week public discussion period before to a vote.
The foundation will proceed with burning the reserve if there is agreement. In the event if not, the team stated that different options will be taken into consideration for additional debate and vote.
June 2024, Cryptoniteuae