# Astar Foundation burning proposal of 5% of Astar genesis allocation
**URL:** https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923
**Category:** Offchain Discussions
**Created:** [June 4, 2024, 11:00am UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923 "2024-06-04T11:00:41Z")
**Posts on this page:** 13
**Page:** 4
### Author:  [@Doinglifewell](https://forum.astar.network/u/Doinglifewell)
#### Post date: [June 10, 2024, 9:25am UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/62 "2024-06-10T09:25:56Z")
Hi @Maarten,
Thank you for bringing up this proposal to the community for discussion.
We think that the burn of 350M ASTR and allocation of 70M ASTR to UCG is a good idea and will benefit the entire community.
However, we would like to raise to the attention of the community two issues that have been highlighted in previous posts:
- [Astar dApp Staking v3 Dynamic Tier Thresholds review proposal](https://forum.astar.network/t/astar-dapp-staking-v3-dynamic-tier-thresholds-review-proposal/6874) - Tier Thresholds are not dynamically recalculated based on Astar Network TVL/TVS, but set as per MVP Workshop proposed threshold as per Astar Network TVL/TVS in July 2023. Therefore, burning 350M ASTR instead of adding the tokens to Astar economy removes the possibility of those tokens being staked in any dApp, which would increase the likelihood of a dApp to obtain a higher tier and better rewards
- [Build2Earn Rewards Query 1.1](https://forum.astar.network/t/build2earn-rewards-query-1-1/6697) - dApp Staking v3 was released with [two known issues](https://forum.astar.network/t/dapps-staking-v3-proposal/4206/56) that affected the distribution of rewards to all builders since the 12th of February (launch of dApp Staking v3 to 31st May (approx), when the [issues were resolved](https://forum.astar.network/t/dapps-staking-v3-proposal/4206/126). Unfortunately, due to the reduction on the price of ASTR token, the direct impact was a reduction of up to 50% on the rewards distributed to all builders
Our proposal is to allocate a small part of the 350M ASTR to reconcile the rewards that were supposed to be distributed to builders, based on their Tier category, as per approved dApp Staking v3 rewards distribution.
> 
In our opinion, Astar Network’s main value proposition is the continuous support to builders based on the total value stacked by the community in our preferred dApps.
The current tier thresholds and the proposal to burn 350M ASTR, instead of further supporting Astar builders, aims to burn as much of Astar Network inflation as possible, which is not in line with Astar Network value proposition for builders as a blockchain.
We appreciate the support of the community so far and look forward to keep building on Astar Network our solution to connect physical products to customizable digital experiences.
---
### Author:  [@Juminstock](https://forum.astar.network/u/Juminstock)
#### Post date: [June 10, 2024, 1:38pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/63 "2024-06-10T13:38:29Z")
The opinion of one of our most committed builders is extremely vital to keep in mind because what he is expressing is something that many builders currently feel in our ecosystem.
I know this somewhat deviates from the main conversation, but we cannot overlook his position and opinion because it is accurate.
@Doinglifewell has my support in providing a prompt solution to the dApp builders.
---
### Author:  [@you425](https://forum.astar.network/u/you425)
#### Post date: [June 11, 2024, 6:49am UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/64 "2024-06-11T06:49:40Z")
I understand your opinion, but I think it is better to consider it separately from this case.
First of all, the threshold and oracle thing was known from the time v3 was released. Unlike the recent bug, it is not strange because it is working as implemented. And the amount of reward was reduced because the price of ASTR went down, but if the price of ASTR had gone up, the amount of reward would have gone up. Would the developer then return the reward? This is impossible.
But if the community wants to compensate the developer for ASTR for this, that’s fine. However, I think that should be taken out of the treasury, not the burn target this time. I think most people who are already paying attention to the ASTR are assuming that it will all be burned, so I think that reducing the amount of burn will have a negative impact.
---
### Author:  [@MrKarahanli-Emre](https://forum.astar.network/u/MrKarahanli-Emre)
#### Post date: [June 15, 2024, 9:54pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/66 "2024-06-15T21:54:28Z")
First of all, I must say that I preferred to listen and read all the opinions for a while until our monthly meeting.
The community wants two things: Burn (this is something that more owners and stakers want) and Airdrop (something that newcomers, Yoki and Astar zkEVM users want).
Since the $350 Million $ASTR part is more related to the old (og) community, I favour the burn and it makes more sense for it to happen in one go. We can increase the number of unique hodlers by making a synergistic move with the announced Yoki airdrop.
In addition, there is already a budget allocated for the Yoki Airdrop (shown at our official monthly ambassador meeting). If this airdrop amount will not satisfy the general user, a certain amount of ASTR units allocated for incineration (around 1 million dollars) can be given to Yoki Airdrop recipients.
To announce new incentives while attracting the attention of people and projects in other ecosystems with Yoki and Yakim. It will help us successfully keep newcomers and projects in our network.
At this point, we can use our dApp Staking revenue of 74 Million $ASTR tokens for UCG and increase the number and amount of grants as Starknet or Arbitrum did.
Emre-Mr.Karahanli
---
### Author:  [@Maarten](https://forum.astar.network/u/Maarten)
#### Post date: [June 16, 2024, 1:23pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/67 "2024-06-16T13:23:09Z")
> [@Doinglifewell](#):
>
> Our proposal is to allocate a small part of the 350M ASTR to reconcile the rewards that were supposed to be distributed to builders, based on their Tier category, as per approved dApp Staking v3 rewards distribution.
We will soon make another proposal related to dApp Staking and the old dApp Staking wallet. It makes more sense for me to make this suggestion on that forum post. More information about that one will be live before we start with this voting.
cc @0xRamz
---
### Author:  [@Maarten](https://forum.astar.network/u/Maarten)
#### Post date: [June 16, 2024, 1:27pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/68 "2024-06-16T13:27:44Z")
### Weekly Summary: Astar Foundation Burning Proposal
#### Update:
Not much to add after the round-up created here:
> [@Astar Foundation burning proposal of 5% of Astar genesis allocation](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/57):
>
> Weekly Summary: Astar Foundation Burning Proposal General Sentiment: Positive: The Astar community generally supports the proposal to burn 350 million ASTR tokens from the genesis allocation; most replies support this initiative as they see it as a beneficial move to reduce supply and increase token value. Support for Burning: Many members agree that burning the tokens will have a positive deflationary impact and boost the attractiveness of staking rewards. Proposed Options and Suggestions: I…
We shared more information during our Community Call:
>
### Next Steps:
1. **Open Discussion (final week):** Continued community feedback and suggestions for another week.
2. **Create the voting on Townhall**
---
### Author:  [@Gaius\_sama](https://forum.astar.network/u/Gaius_sama)
#### Post date: [June 25, 2024, 2:35pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/69 "2024-06-25T14:35:19Z")
Voting for this proposal is open on Astar Townhall:
> **[Proposal to burn 5% of Astar genesis allocation - Proposal in Townhall House...](https://astargov.com/astar/post/0x37876dd82505c25d4ce5b4c3efa522d178d1517bfd2ba7dc9c65c0162cc421dd)**
>
> The goal of this proposal is to vote on the Burning proposal initiated by the Astar Foundation in this forum discussion.TDLR:
> The Astar Foundation is considering a significant initiative to burn its parachain auction reserve, initially set aside...
The voting options are as follows:
- Burn 5% of Astar Genesis (350M ASTR) & Transfer all wallet rewards (74M ASTR) to the [Astar Treasury](https://astar.subscan.io/account/YQnbw3oWxBnCUarnbePrjFcrSgVPP2jqTZYzWcccmN8fXhd);
- Burn 5% of Astar Genesis (350M ASTR) & Transfer all wallet rewards (74M ASTR) to the [Community Treasury](https://astar.subscan.io/account/ZfEuzYHyfo5TZfAx9fsntdkx2W4gDFLPwUNeqSrJTpQJXDc) / UCG Program;
- Create a new and different proposal for this allocation;
- Abstain;
ASTR holders, you can vote using your tokens.
Vote wisely. 🗳
---
### Author:  [@Shivam](https://forum.astar.network/u/Shivam)
#### Post date: [June 26, 2024, 8:14pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/70 "2024-06-26T20:14:20Z")
I agree with burning it.
---
### Author:  [@Max.eth](https://forum.astar.network/u/Max.eth)
#### Post date: [June 30, 2024, 1:52pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/71 "2024-06-30T13:52:09Z")
very well presented, thank you @Maarten
---
### Author:  [@Leo](https://forum.astar.network/u/Leo)
#### Post date: [June 30, 2024, 5:58pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/72 "2024-06-30T17:58:08Z")
Astar team’s move was truly significant.
I participated in the vote. At the same time, I was really pleased with the ease of using the townhall.
---
### Author:  [@MrKarahanli-Emre](https://forum.astar.network/u/MrKarahanli-Emre)
#### Post date: [June 30, 2024, 5:58pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/73 "2024-06-30T17:58:37Z")
I voted for our second option, burn& community treasury.
---
### Author:  [@astar10](https://forum.astar.network/u/astar10)
#### Post date: [July 1, 2024, 12:58pm UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/74 "2024-07-01T12:58:03Z")
I also agree with the proposal to burn the ASTR token.
One good thing about burning the token is that it makes it more scarce, but are there any negative effects?
---
### Author:  [@you425](https://forum.astar.network/u/you425)
#### Post date: [July 2, 2024, 6:22am UTC](https://forum.astar.network/t/astar-foundation-burning-proposal-of-5-of-astar-genesis-allocation/6923/75 "2024-07-02T06:22:42Z")
As for ASTRs, I think it is safe to assume that there will be no negative impact.
For tokens with a fixed issuance limit, the burn could increase the authority per token and compromise decentralization; since ASTRs are inflation tokens, this is not a concern at this time.
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