I wanted to thank you for this good and excellent proposal, in my opinion, a positive vote for this proposal can be an effective theme for the future of the network.
2 Likes
Here again we see that it is evident and grateful to many in the community, @defiguy I believe the proposal could be added to the original proposal, this idea of using rewards to strengthen the network in question techniques. And then this percentage is defined in a separate proposal, with independent voting, if possible @Maarten.
And as @you425
showed between total burning and per month the difference is infamous, there is no reason to divide them.
Now the initial objective of the proposal that many are reluctant to burn is, as it is no longer necessary, simple and direct.
Again, many of the Stake Holders are not here, and even though it is not correct, many expect appreciation, I believe it is a positive marketing point for the entry of new investors, along with all the work that has been built.
I’m completely in favor of transferring the 70M $ASTR tokens to the UCG program; this idea will be attractive for new projects and builders!
4 Likes
Absolutely, I’m all in! Burning the reserve sounds like a smart move to amp up the ASTR value, and shuffling those 70 million ASTR tokens to the UCG program is just the cherry on top.
It’s a win-win for everyone, making Astar not just a playground for techies but a hub for fresh projects and creativity. Let’s make it happen! 
3 Likes
This is a meaningful step forward in the history of the Astar Network. I support this proposal. In my opinion, it would be beneficial to gradually burn the tokens for marketing purposes, as it could create a news event that draws attention to the Astar Network.
Additionally, burning these tokens can enhance holder satisfaction and significance by potentially increasing the value of the remaining tokens.
Furthermore, this burn can signal to the market that the foundation is confident in the long-term viability and financial health of the network, as it is part of a broader dynamic inflation strategy.
1 Like
After hearing various opinions, my understanding of this proposal has deepened. My opinion has also become the same as @you425’s. Therefore, I agree with this perspective and policy
1 Like
I greatly appreciate Astar’s proposal to burn Astar tokens. It shows that the Astar team is not only highly principled but also deeply concerned about the long-term operation of the entire system. Many people have overlooked the impact of Polkadot’s core time upgrade, which renders the previously reserved tokens for parachains without an additional purpose. This issue is not exclusive to the Astar project; many projects within the Polkadot ecosystem might face similar challenges. Astar is the first project to seriously consider and propose a solution.
The proposed 5% burn is quite significant, and considering that Astar’s current inflation rate is not high, this could lead to Astar becoming a deflationary token within the next one or two years. While burning tokens is a good idea, it needs to be balanced with the ecosystem’s development. For instance, our recently concluded Yoki event highlighted many areas where Astar tokens could be utilized. I hope that staking rewards for Astar will be sufficient to support future community building and projects within the Astar ecosystem.
I will actively promote this initiative and hope that more people interested in and holding Astar will come to our forum to share their opinions.
4 Likes
I support the first proposal. Nice initiative team!
2 Likes
Good discussion. It’s very informative.
I agree with the following two points:
- Burning 350M ASTR
- Utilizing 74M ASTR for UCG
Regarding the burning method, I support a single burn. In the case of stock buybacks in the stock market, conducting them over a short period rather than a long period can generate momentum, which leads to better price movements. This is based on my experience, so please take it as a reference.
5 Likes
I support @bao 's opinion!
3 Likes
I will support the burn of tokens. The reserve for parachain auctions is not required in future and it creates an unnecessary hold on liquidity. By burning these tokens, we can enhance the value of the remaining tokens, benefiting all stakeholders in the ecosystem.
1 Like
First of all, I appreciate that the Astar Foundation has brought up this topic publicly regarding how to handle the 350 million $ASTR initially reserved for the parachain crowdloan and its associated staking rewards of over 70 million $ASTR. It’s exciting to see that the usage of more than 5% of the initial total supply is being discussed publicly! 
On a higher level, I agree with both burning 350 million $ASTR of the reserved amount and utilizing the 70 million $ASTR accumulated from the dApp staking rewards.
Currently, approximately 615,200 $ASTR are being minted on an ERAly basis. Burning 350 million $ASTR corresponds to roughly 569 ERAs of emissions, which translates to around 1.5 years to reach the same amount of the current total supply and market value if we maintain the same inflation rate for that period. Though I’m not entirely sure if this interpretation makes sense, I view this burning as an opportunity for Astar Network to develop and advance significantly over the next 1.5 years.
Regarding the more than 70 million $ASTR in staking rewards, as others have mentioned, these can be used for ecosystem growth, particularly by moving them to the community treasury, which currently holds approximately 23 million $ASTR. However, I would avoid transferring them partially since there are expected immediate expandable amounts (of course, in case, upon an agreement and discussion) of 20 million $ASTR from the dApp staking rewards never claimed in V1 and V2, as Maarten mentioned above. This approach could trigger and create an opportunity for more long-term meaningful inflows of users and contributors to the ecosystem.
In short, I am very supportive of this proposal on a high level and very excited to participate in further discussions over the next three weeks!
Note)
For those who are interested in why the staking rewards can increase when the total supply decreases, see Legacy Tokenomics in Docs. The TVL percentage increases for decreasing total amount of issued $ASTR.
Bests,
Pithecus
3 Likes
Agree on this point.
We can use the 70M ASTR for the ecosystem growth
- UCG Program
- Boost dapp staking (for all tiers, using some KPI to select the top 15/20 dapps)
- Maybe usage for future airdrops/liquidity campaign to generate retail activity and increase metrics
Meanwhile the 5% can be burn in a single tx to make a statement for the whole market of our commitment to reduce the circ supply and constant decrease of inflation.
5 Likes
I am 100% in favor of @defiguy says, in my opinion, the most convenient for the ecosystem at this point.
1 Like
IMO those 70M should be entirely be allocated to UCG to increase it budget to about 100M and give back claws and fangs to this now toothless “Grant” program.
As mentioned before, rewards generate by UCG can help finance those promotional initiative in addition to treasury already allocated to that which is, as mentioned by @Gaius_sama, underused.
1 Like
I would just add to the tokenomic and technical discussions, that is the choice to burn the token is made, it has to be coordinated with smart marketing effort in order to capitalize on this move.
We should build a narrative around it.
1 Like
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:
-
Immediate Burn: most support the idea for an immediate burn to maximize marketing impact and simplify execution.
-
Staggered Burn: some members suggest burning in batches to monitor and adapt to market conditions. This method offers more control and potential for gradual positive market effects.
-
Alternative Uses for ASTR, reward allocation:
- Unstoppable Grants: Allocating tokens to the Unstoppable Grants program to support promising dApps and projects.
- Treasury Allocation: fund long-term initiatives and Agile Coretime expenses.
- Airdrop to Holders: A proposal to distribute a portion of the tokens to active ASTR holders as a reward.
Concerns and Additional Discussions:
- Agile Coretime Costs: Uncertainty about future costs associated with Agile Coretime.
- Economic Impact: Questions about potential negative impacts or disadvantages of the burn.
- Marketing and Engagement: Emphasis on the marketing benefits of a significant burn and potential engagement strategies for sustaining community interest.
Next Steps:
- Open Discussion (2 more weeks): Continued community feedback and suggestions for another 2 weeks.
12 Likes
Thanks @you425, Agree here with the 74M ASTR towards UCG. We have a separate thread to further discuss on adjustments to the Unstoppable Community Grants program.
This 70M could also present great marketing opps to get more teams looking at it.
As per the burning schedule discussion, imo I think spreading the burn across 3-6 “Astar Monthly Bonfires” could present a great opportunity for marketing so it increases the chances it reaches the most users possible. One-and-done seems like a wasted chance to get the Astar brand and this community decision known.
5 Likes
Are we allocating the entire 74M for the UCG? Are you suggesting creating a BURN event, similar to what CZ did for BNB on social media, to increase awareness? This could generate viral content if we collaborate with influential crypto KOLs with a wide reach. It would help us expand our audience to the broader crypto community, not just the existing Polkadot/Astar community.
2 Likes
Yes, from a marketing perspective, dividing and burning is an option.
However, the effect of a regular burn from Binance sales, as in BNB, is a bit different from that of a split burn of an already determined amount, as in this ASTR. The effect would be inferior in this case.
Also, the recipient of the information may easily become accustomed to it because it does not generate surprise and does not deviate from the default. Still, if this is more positive from a marketing perspective, this is a good choice. As mentioned earlier, the difference in the effect on inflation is not that great regardless of which one you choose.
2 Likes