ASTR To The Moon? Astar Network Burns 5% Of Supply In Bold Move

Astar Network (ASTR), a popular multi-chain smart contract platform, is set to burn a significant portion of its token supply. Following a successful community vote, a total of 350 million ASTR tokens, representing roughly 5% of all circulating tokens, will be permanently removed from circulation. This move aims to reduce the overall supply and potentially boost the value of the remaining ASTR tokens.

The burned tokens were originally allocated for bidding in Polkadot para-chain auctions, a feature that was later shelved by the Polkadot protocol. In addition to the burn, Astar Network will also transfer another 70 million ASTR to the community treasury.

Token burns are a common strategy employed by cryptocurrency projects to manage token supply and potentially increase their value. The underlying principle is that by reducing the total number of tokens available, the remaining tokens become scarcer, which can lead to a price increase.

Astar’s decision to burn tokens has already been met with positive sentiment. Following the announcement, the price of ASTR experienced a notable surge, exceeding 7% within a 24-hour period. This growth outperformed several competitors in the market. Additionally, trading volume for ASTR spiked by 84% compared to the previous day, reaching a high of $50 million.

Astar Network isn’t the only project utilizing token burns to drive token value. Floki Inu, a popular meme coin with a dog theme, recently implemented a burn proposal approved by its Decentralized Autonomous Organization (DAO). This proposal aimed to permanently remove over 15 billion Floki Inu tokens from circulation. The project has conducted numerous burns throughout the past year, which are believed to be a major contributing factor to the token’s impressive 70% price rally.

Shiba Inu, another well-known meme coin, boasts a thriving burn mechanism that continuously removes SHIB tokens from circulation. Just recently, Shiba Inu witnessed a staggering 3800% increase in its burn rate, following hints from a project lead about an upcoming initiative to further accelerate the burn process. This burn event eliminated a significant amount of SHIB tokens (roughly 300.34 million), with one particular wallet address contributing a substantial portion to the burn.

The success of token burns in projects like Floki Inu and Shiba Inu suggests that Astar Network’s burn strategy could have a positive impact on the price of ASTR. However, it’s important to remember that the cryptocurrency market remains highly volatile, and numerous factors can influence token prices.