Floki DAO proposed reducing the cryptocurrency’s total supply by 190 billion tokens, a 2% decrease in circulating supply. Following community approval, Floki (FLOKI) token’s price surged.
Yesterday, it surged by over 100%, and in the last 7 days, it soared by a remarkable 343%, according to reports.
Floki DAO Votes to Burn 190 Billion Tokens
Developers recently proposed a token burn aiming to remove 190 billion tokens valued at $11 million from circulation. This move is expected to enhance network security and bolster investor confidence in the tokens.
IT'S OFFICIAL: FLOKI DAO PASSES VOTE TO BURN 190,918,585,431.84 FLOKI TOKENS
The #Floki DAO has voted in favor of burning 190,918,585,431.84 $FLOKI tokens. At the current market value, this is worth over $24 MILLION.
In line with the decision of the Floki DAO, the tokens will… pic.twitter.com/uGu0XFU5p9
— FLOKI (@RealFlokiInu) March 2, 2024
The tokens marked for removal will be sourced from the supply held on the Multichain bridge. Notably, Multichain faced a significant setback in July 2023 due to an exploit that led to the loss of over $130 million.
In the wake of investing euphoria in meme coins, FLOKI’s value surge might be attributed to this trend. Other meme tokens, including Dogecoin (DOGE), Shiba Inu (SHIB), and BONK, have also witnessed significant price increases, some exceeding 50% over the past week.
At the time of writing, FLOKI is trading at $0.0001663, marking a 30% increase over the past 24 hours, according to data from CoinMarketCap.
Floki DAO Proposes Significant Token Burn
In a recent proposal by the Floki DAO, it was suggested to conduct another significant token burn, similar to the one carried out in January 2023. This time, the proposal aims to burn 190,918,585,431.84 $FLOKI tokens, which is about 2% of the current circulating supply, valued at around $11 million.
The purpose behind this proposed token burn is to enhance the long-term security and stability of the Floki network by permanently removing these tokens from circulation. These tokens are currently held in a multisig wallet, following an incident where Floki narrowly escaped a Multichain bridge exploit, resulting in a loss of $130 million. Burning these $190 billion FLOKI tokens is seen as the most secure method to ensure they never re-enter circulation.
A community vote on the proposal took place from February 29, 2024, to March 2, 2024. The results showed that 84% of voters were in favor of the burn.
Explaining the process, the developer team mentioned, “If the Floki DAO votes in favor of burning these tokens, they will be burned within a week of the DAO vote passing. If the Floki DAO votes against burning these tokens, they will be kept in the Floki treasury for future use.”
Token burns involve permanently removing tokens from circulation by transferring them to a crypto wallet that is inactive or beyond anyone’s control. Floki had previously conducted a burn event in January 2023.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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