Astar (ASTR) Token Burn Execution Timeline Set as the Community Votes in Favor of Burning 350M ASTR

Astar [ASTR] was trading 6.63% in the red at press time, in tandem with the broader crypto market, following fears of a worse-than-expected U.S. inflation outlook.

Astar (ASTR) price slid 6.63% on Tuesday morning as crypto markets felt the heat of a worse-than-expected U.S. inflation outlook.

ASTR price performance comes a day after the Astar community voted to burn 350 million ASTR tokens, which was roughly 5% of its total genesis supply.

Astar Foundation had set aside the tokens for the Polkadot parachain auctions, a mechanism for projects to secure parachain slots on the Polkadot (DOT) relay chain.

In the candle auction, blockchain projects bid the DOT native token to the relay chain, which determines the projects that connect to a parachain slot for a given lease period.

However, Polkadot announced in November 2023 that it was phasing out the parachain auctions system, which will be replaced by either Agile Coretime or Bulk Coretime.

In light of the updated mechanism, the Astar Foundation proposed removing the allocation from circulation as part of a strategy to improve ASTR’s tokenomics.

Rewards amounting to 74 million ASTR yielded from this initial token allocation will be retained and held by the community treasury to fund other initiatives.

Astar Foundation Head Maarten Henskens confirmed the proposal passing the vote stage, adding that the execution phase of the token burn will commence by the end of this week.

ASTR/USDT technical analysis: Bullish speculators can secure major support at 0.382 Fibonacci level

News of the vote conclusion briefly catapulted ASTR price to an intraday high of $0.0791.

CoinMarketCap data showed that ASTR’s 24-hour trading volume topped $78 million on Tuesday, up from $20 million on Monday.

On some exchanges, including Binance (BNB), ASTR traded as high as $0.80 before reversing course and tracking losses.

ASTR has since retreated and is one of the worst-performing tokens on the day, down almost 7% to $0.0705 at press time. The ASTR/USDT chart highlighted price struggles in the last two weeks.

Over the weekend, ASTR/USDT slid below $0.069, highlighting its upside struggles that have extended for two weeks now since the token lost ground above $0.075 on June 17.

The ASTR/USDT 4-hour chart showed that ASTR price has established support near $0.063 as it attempted to break out of consolidation in the current low ranges.

ASTR’s price hovered below the 23.6% Fibonacci minor retracement level ($0.0732) in the hourly time frame.

Bullish speculators can look to secure major support at the more significant 0.382 Fibonacci level at $0.0745 on the path toward the critical 0.618 Fibonacci level at 0.0767, where price reversal is likely.

Potential upside beyond this target is expected to be tested heavily near the 0.786 Fibonacci, at $0.0782.

ASTR flashed signs of being overbought on the hourly chart earlier this week, with an RSI above 70 on the 1st of July.

The RSI has, however, been trending below 50, currently at 34.98, following the crypto market’s pullback in the last 24 hours. A reading below 30 would present ideal entry opportunities for short-term positions.

Astar Network has continued advancing its ecosystem, recently launching Astar zkEVM.

The L2 scaling solution, which utilizes Polygon’s zero-knowledge technology, became the first blockchain to integrate Polygon’s cutting-edge technology AggLayer.

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