Burn mechanism on the ASTR token similar to SDN and fixed max supply

Hi everyone, I have already seen that several times on this forum the proposal has been made to introduce a burn mechanism on the ASTR token similar to that of SDN (Shiden Network), and in addition someone was talking about quarterly burns and a fixed max supply to increase the deflationary force.

I noticed that the theme is particularly felt by the community, both here and on Twitter, both in the comments of the official page, and also in the accounts of some specific communities, as in the case of Indonesia. The theme of the burn mechanism is particularly requested.

I do not have the skills to go into technical details, also because I have seen that more than someone, both on this forum and on Twitter, was much more technical than me in describing a possible mechanism.

But based on what I see at the market and fundamentals level, I don’t want to dwell on it as I would just repeat what other users have already said, but I also agree in saying that a burn mechanism to create deflationary force on the ASTR token is more than necessary, as regardless of the fundamentals of Astar Network which are excellent, I have always argued that Astar can become the main public L1 of Japan, but there is still a lot of repulsion due to excessive inflation, which according to many incentives only developers and validators (which is totally right for them), the problem is that if there is no counterbalance that transmits ASTR also a reserve of value, the token itself will only be used and object that of those who will then use it to speculate or simply dump it on investors heads.

As for the fixed max supply, I don’t want to be as extremist as someone who claimed to adopt a system similar to Acala Network, so with a fixed max supply of 1 billion tokens and that’s it, but at the same time I believe that 7 billion tokens in total they are really too much, and moreover without a fixed max supply. Maybe a middle ground could be between 2 and 4 billion, with a balance between inflation and deflationary force.

I think that for the long-term benefit of Astar Network it is a great incentive to introduce different deflationary forces able to offset inflation and at the same time incentivize devs and give fundamental value to the ASTR token.

So summarizing: based on the other proposals seen by other users, my proposal is to adopt a burn mechanism equal to the one in place on Shiden Network, in addition to doing quarterly burns and maintaining a fixed max supply, even unofficially through circulating and total supply around 2-4 billion tokens, continuing with the dApp staking method, paying lavishly for devs and validators but at the same time balancing inflation with the deflationary force mentioned above.

I repeat, what I write is based on all the proposals I have read so far.

Speaking of this, I also take the opportunity to ask if the previous proposals of other users have already been approved, and therefore if my proposal is useful or if a decision has already been made on the burn mechanism.

I repeat, sorry for the umpteenth proposal, as I have seen that both on this forum and on Twitter there are so many who ask for it and all the polls are in favor of a burn mechanism, but in the face of the numerous proposals made by other users I never understood if they had been approved or not, and so I in turn wanted to give my opinion and make my proposal.

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I understand that your proposal is to make Astar deflationary. However, without math and numbers, it is not possible to make this decision. It would be great if you or someone in the community could propose a mathematical model. I will consider this too.

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Topic related to: Proposal - burn mechanism on transaction fees similar to Shiden Network, and quarterly burn events to reduce inflation on the ASTR token - #12 by Maarten

So summarizing: based on the other proposals seen by other users, my proposal is to adopt a burn mechanism equal to the one in place on Shiden Network

This is already done! We now have the same burning mechanism as on Shiden. You can find the version here: Release v4.29.1 · AstarNetwork/Astar · GitHub

continuing with the dApp staking method, paying lavishly for devs and validators but at the same time balancing inflation with the deflationary force mentioned above.

We are currently working on this with the team. As you can hear on our latest crowdcast, the moment we have our proposal ready, we will ask for feedback from the community. When it’s approached by our community we will initiate the new mechanism.

I agree that we should do something and this currently has been put on our roadmap to be executed. Thanks for your topic.

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Trying to interpret what the user wrote, I think that on a mathematical level it refers to adopting the same burn mechanism currently in place on Shiden Network, and in addition to occasionally doing burn events, such as the one done by Astar Network at the beginning of the year, to burn part of the ASTR tokens in the treasury, so as to increase the deflationary force. Reading what the community writes I think they want a mathematical model similar to that of Solana, Near or Moonbeam, in the sense that there is dynamic inflation, which rightly pays developers and validators, but at the same time gives the ASTR token a fundamental value that over time you transform it into a store of value, and the more adoption increases, the more the burn increases with dynamic inflation, leading the token to become deflationary but at the same time without affecting the rewards for devs and validators. I think they took their cue from Solana and Near’s tokenomics mainly. Mathematically I don’t have a scheme but the mechanism in place should be explained on their website.

ASTR burning event exemple

Solana tokenomics - burn

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I agreed if we can place a max supply for Asatr will encourage more people to look into this project. I recommended this project to few of my friends and once they heard no max supply, they passed. Also, is it possible to lower the inflation rate & emission by way of only unlocked Astr coins receive APR. This way, instead of 10% inflation, we can lower it to 4-6%?

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I think many people don’t know that Astar Network already has the same burn mechanism as Shiden Network. It would be good to publicly communicate it also on Twitter. As for the rest, I hope to see the proposal to increase the deflationary force on the token and put the fixed max supply. I saw that the fixed max supply has already been added on Shiden Network and I don’t remember it having been added before, I hope the same thing is done with Astar Network. Anyway I still think that circulating supply must not be higher than 4 billion. The best solution would be around 1-2 billion tokens, with a dynamic inflation that can increase and decrease depending on the tokens in circulation.

I believe this is not the right moment for burn astr. Instead we can use these ASTR to incentivize new investors to use new projects are launching on Astar and add more TVL to our ecosystem.

And for the part of max supply fixed, ethereum hasn’t has max supply and is the #2 on coinmarketcap with a current value $1000 usd per token, We are doing great Technologies on Astar even better than ethereum. We don’t need to set a max supply for Astar to shine. Thank you.

I think burn and buyback are important, because investors buy a token for investment and support the project. if the token is only inflation and there is no deflation, it is the same as having fiat money.