FLOKI Soars 15% After DAO Proposal to Burn $55M in Floki Inu Tokens

Developer Floki Inu is considering burning nearly 5 trillion FLOKI tokens (worth nearly $55 million) to reduce the tax applied to each transaction.

FLOKI prices reacted positively, jumping 15% within hours.

• The team behind the popular memecoin Floki Inu perhaps burn its bridge tokens (4.97 trillion assets) and thereby shrinking the tax charged on each transaction to 0.3%. The maximum circulating supply of FLOKI will remain at 10 trillion assets even if the effort is completed.

“We understand that the decision to burn bridge tokens is a very significant (and permanent!) decision and the ETH chain has a higher percentage of circulating supply, so we will be happy to assist large holders looking to bridge to BSC. so manually before burning,” said the developer.

• The proposal further showcases the protection risks associated with cross-chain bridges. Burning multiple tokens reduces the likelihood of a potential “catastrophic impact”, the team adds:

“In the case of Floki, an exploit on our main cross-chain bridge would have had a disastrous impact on the project as this bridge currently holds 55.7% of FLOKI’s total circulation supply. This is a lot of tokens, and it is more than enough to deplete a project’s liquidity pool and essentially destroy the project if exploited.

• The majority of voters have expressed their support for the initiative.
• The project’s native token – FLOKI – jumped nearly 15% immediately after the plans went live. Currently, it is trading at a 5-month high of $0.00001258 (according to CoinGecko data).