TL;DR
- Floki DAO has proposed a plan to burn 190 billion FLOKI tokens, which are worth over $11 million. This move is intended to significantly reduce the cryptocurrency project’s total supply.
- The tokens being considered for burning are currently stored in a multisig wallet and were rescued from the collapse of the cross-chain bridge Multchain following a $130 million exploit.
- The proposal is now open for a community vote, and if approved, the tokens will be incinerated within a week. If the proposal is rejected, the tokens will be retained in the Floki treasury for potential future use.
Floki DAO has proposed a plan to burn a staggering 190 billion FLOKI tokens. This proposal, if passed, will result in over $11 million worth of FLOKI tokens being permanently removed from circulation. The FLOKI developer team has put forward this proposal intending to reduce the cryptocurrency project’s total supply by a significant amount.
DAO PROPOSAL: BURN 190,918,585,431.84 FLOKI TOKENS
There is a new Floki DAO proposal that will affect the future and stability of the $FLOKI project.
Please read the full proposal and vote here:https://t.co/Ue6OgIFDK9 pic.twitter.com/Gv9YHDGabX
— FLOKI (@RealFlokiInu) February 29, 2024
The proposed burn will account for approximately 2% of the circulating supply. The team stated:
“We would like to put forward a proposal for another massive $FLOKI token burn, similar to the one we had in January 2023. This time around, we’re proposing a burn of 190,918,585,431.84 $FLOKI tokens. That’s around 2% of the token’s current circulating supply, which is currently worth around $11 million.”
The tokens that are being considered for incineration are presently stored in a multisig wallet. These tokens were barely rescued from the collapse that struck the cross-chain bridge Multchain following a $130 million exploit. The team believes that incinerating these $190 billion FLOKI tokens is the “sole trustless method to ensure that they NEVER get circulated.”
What the Proposed Burn Means for FLOKI’s Future
The proposal is now open for a community vote, which is scheduled from February 29, 2024, to March 2, 2024. A snapshot of the vote reveals that 84% of the votes cast so far support the burn.
The developer team has declared:
“If the Floki DAO votes for the incineration of these tokens, they will be incinerated within a week of the DAO vote approval. If the Floki DAO votes against the incineration of these tokens, they will be retained in the Floki treasury for potential future utilization.”
This proposal comes on the heels of a similar move in January 2023, when Floki burned more than $124 million worth of its native tokens. The meme coin’s price leaped more than 70% following the historic burn. The recent proposal has once again sparked interest in the coin, with many speculating on the potential impact on FLOKI’s price should the proposal pass.
This move by Floki DAO underscores the dynamic and often unpredictable nature of the cryptocurrency market. It remains to be seen how this proposal will play out and what impact it will have on the future of FLOKI.
