Proposal to Delist Core Contributor & Community Treasury from dApp Staking

Governance
23

I think the essence of this proposal lies in the following points:

  • Preventing stakers from casually voting for Core Contributors or the Community Treasury without much thought.
  • Making it easier for rewards to flow to developers.
  • Encouraging stakers to learn more about the projects they stake on.

This in turn will increase interest in dApps within the Astar ecosystem and improve the functioning of dApp Staking. However, a re-evaluation of the projects currently listed in dApp Staking is necessary, and I believe this should be led by the ACC (since that is originally its role).

As for burning, I don’t think it has much real meaning here. In fact, in dApp Staking, rewards that are not allocated as developer rewards (i.e., the rewards from empty Tier slots) are already being burned rather than contributing to inflation. In other words, burning is always happening in the background. Burning the Core Contributors’ or Community Treasury’s share on top of this would not significantly change the overall outcome.

The true essence of burning is to “reduce circulating supply.” Burning ASTR that has never entered circulation has almost no effect, and continuously burning small amounts also makes little difference.

Astar has conducted relatively large-scale burns in the past, but from a marketing (price) perspective, they had almost no effect. This was because the tokens being burned were ones held outside the market and had never entered circulation, so the impact on price was negligible.

That said, in extreme large-scale cases like what recently happened with OKB, the story can be different. But that is not something Astar can realistically replicate.

If burning were to be used for marketing purposes, it would need to be along the lines of:

  1. A large-scale burn from allocations.
  2. Buybacks from revenue, followed by burning.

Neither of these are viable for Astar (though #2 is something the AFC is attempting). Trying to achieve this through dApp Staking simply doesn’t make sense. In that case, reducing inflation itself would be more effective.