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Highlights
- Astar Network has agreed through its community to burn 350 million ASTR
- The tokens were reserve for use in bidding under the Auction regime
- Many tokens have hit success with these burn mechanism
After receiving the opinion if its community through a governance vote, Astar Network is set to incinerate up to 350 million ASTR.
Astar Network (ASTR) Burn And Possible Price Impact
The burn that the popular multi-chain smart contract network plans to undergo will see the destruction of 5% of the total ASTR supply. These tokens were initially allocated to Polkadot parachain auctions which were shelved for a long time by the Polkadot protocol. In addition to the 350 million token burn, the protocol plans to send another 70 million ASTR to the community treasury.
Usually, a token burn is a big deal for every ecosystem as it reduces the supply of its assets. Most times, the resulting scarcity triggers a bullish event which involves improvement in the price of the token in question. Following the announcement of the news of its token burn, ASTR has seen a significant rise in its market value.
At the time of this writing, the token was trading at $0.07558, after bagging more than 7% increase within the last 24 hours. With this growth, ASTR has outperformed a few of its counterparts in the market. Also, the token’s trading volume soared as high as $50 million, topping Monday’s level by 84%.
Beyond ASTR Burn, Memecoins Boosting the Deflationary Playbook
Apart from Astar, many other networks have been running their tokens in recent times. The Decentralized Autonomous Organisation (DAO) behind Floki Inu issued a token burn proposal to permanently remove slightly above 15 billion tokens from circulation . As soon as it bagged approval, the network swung into action. In the last one year, the popular dog-themed meme coin has conducted countless token burns and these events form a major contribution to the 70% price rally that the Floki Inu token has seen.
Another ecosystem that keen on its burn mechanism is Shiba Inu. Notably, Shiba Inu has one of the most thriving burn mechanism that sees constant incineration of SHIB tokens. On Monday, the burn rate of Shiba Inu skyrocketed 3800%, in line with an earlier announcement from LUCIE, Shiba Inu marketing lead. LUCIE had hinted at an upcoming initiative that could further boost the token burn rate,
Meanwhile, the SHIB burn took out a staggering 300.34 million SHIB from circulation, with one wallet address, “0x7fe…11264,” being particularly noteworthy for its significant contribution.
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