Floki Inu DAO Approves Proposal to Burn $100 Million in Tokens, FLOKI Price Soars
Floki Inu DAO has approved a proposal to burn $100 million worth of tokens, leading to a dramatic 100% price increase for FLOKI over the past week.
Floki Inu DAO Approves $100 Million Token Burn Proposal, FLOKI Price Skyrockets
Floki Inu, a popular meme coin with a charming dog mascot, originally launched on the Ethereum network with a total supply of 10 trillion tokens.
The project later expanded to the BNB Chain at the community’s request. Initially, a new token contract was deployed on BNB Chain with a total supply of 10 trillion tokens, and a cross-chain bridge was created to allow users to transfer FLOKI tokens between Ethereum and BNB Chain while maintaining the total supply at 10 trillion tokens.
At that time, the development team provided 600 billion tokens from the project’s treasury to serve as initial liquidity for the bridge.
Over time, the community noticed that BNB Chain offered faster and cheaper transactions compared to Ethereum. Consequently, there was a trend of locking FLOKI tokens on Ethereum to use them on BNB Chain.
“As a result, even though the majority of the token supply remained on Ethereum, the token supply had balanced to the extent that the bridge's stability was no longer a concern,” the team explained.
This led the FLOKI developers to propose burning 4.2 trillion tokens held in the bridge to reduce transaction fees.
#Floki's latest DAO proposal is live!
— FLOKI (@RealFlokiInu) January 26, 2023
If this proposal passes:
- 4.97 trillion $FLOKI tokens (worth ~$54,670,000) in the Floki bridge will be burnt.
- The #Floki buy/sell transaction tax would be reduced to 0.3%.
Read the full proposal and vote here:https://t.co/nmx4cxJ6v1
With 99.97% of votes in favor, the proposal was approved with the following outcomes:
- Transaction fees will be reduced to 0.3% starting from February 3, 2023.
- 4.97 trillion FLOKI tokens will be burned on February 9, 2023.
The #FLOKI DAO has spoken!🦾
— Whale Coin Talk (@WhaleCoinTalk) January 29, 2023
The proposal has been passed, with 99.97% voting in favor of the proposal while only 0.03% voted against the proposal.📊
Results🔴
1⃣ Transaction tax will be lowered to 0.3% on 3rd Feb☑️
2⃣ 4.97 trillion $FLOKI tokens will be burned on 9th Feb☑️ https://t.co/lOfohwkhhY
The tokens to be burned were valued at $102 million at the time the proposal was concluded.
Additionally, the significant number of hacks targeting cross-chain bridges in 2022 also motivated the FLOKI community to support this proposal.
“If the Floki Inu cross-chain bridge were attacked, it would mean losing 55.7% of the token supply. This is a substantial amount, enough to impact the project and its current liquidity pools. To put it bluntly, the project would be destroyed if the bridge were compromised.”
The price of FLOKI has surged over 108% in the past 7 days, reflecting a strong positive reaction from the community to the token burn proposal.
4H Chart of FLOKI/USDT on Huobi as of 03:00 PM, January 30, 2023
