Floki price surges amid proposal to burn 4.97 trillion FLOKI
- Floki Inu will burn 4.97 trillion FLOKI tokens worth over $55 million if the DAO vote passes.
- The meme coin project is also looking to cut transaction tax from 3% to 0.3% and permanently disable the cross-chain bridge.
- The price of FLOKI rose 25% early Saturday to hit its highest level since August.
Floki Inu (FLOKI) holders are voting on a major governance proposal that could see the meme cryptocurrency burn millions worth of the nativ FLOKI tokens, permanently removing them from circulation.
Floki to burn 4.97 trillion FLOKI and cut tax to 0.3%
Here’s the DAO proposal announcement as posted by the official Floki Inu Twitter account.
#Floki‘s latest DAO proposal is live!
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
— FLOKI (@RealFlokiInu) January 26, 2023
Notably, Floki Inu’s maximum supply is 10 trillion tokens, but more than half of it is currently held in a cross-chain bridge created when the mainnet launched on the BNB Chain.
The developer team highlights the security threats posed by this scenario, noting in the proposal that cross-chain bridge exploits have seen over $2.5 billion lost in the past two years.
“In Floki’s case, an exploit on our main cross-chain bridge would have a catastrophic impact on the project since this bridge currently holds 55.7% of what should be FLOKI’s total circulating supply,” the developers noted.
According to the proposal introduced Friday, the goal is to also cut the 3% tax on FLOKI transactions to 0.3%. This will enhance FLOKI’s utility and the Floki Inu ecosystem as one of the top platforms for decentralised finance (DeFi).
If the DAO vote on the two issues passes, 4.97 trillion FLOKI worth over $55 million will be burnt. The team will also permanently disable the cross-chain bridge. As of 9:00 am ET on 28 January 2023, roughly 99.97% of the votes were in support of the proposal.
Voting will end at 9:16 PM UTC (4:16 pm ET) on Saturday, 28th January.
FLOKI price jumps 25% on token burn proposal
As token burns reduce supply of a given token, the expectation is that the price of that token will go up amid the basic principles of scarcity. The outlook is no different for Floki Inu.
There is excitement about what the future could hold for the FLOKI token, even as the meme coin continues to see upside momentum in 2023.
The price of the Floki Inu utility token surged early Saturday to hit $0.00001715, its highest level since August. According to data from CoinGecko, FLOKI is currently more than 25% up in the past 24 hours, changing hands around $0.00001643.
Weekly gains are nearly 50% while the token’s value has risen by 96% in the past 30 days.