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:
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Astar dApp Staking v3 Dynamic Tier Thresholds review proposal - 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
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Build2Earn Rewards Query 1.1 - dApp Staking v3 was released with two known issues 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. 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.