Astar Foundation burning proposal of 5% of Astar genesis allocation

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 - 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 - 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.

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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.

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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.

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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

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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

Weekly Summary: Astar Foundation Burning Proposal

Update:

Not much to add after the round-up created here:

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
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