The FLOKI Inu community approved a recent proposal to burn 4.2 trillion FLOKI tokens on a cross-chain bridge and lower transactional tax. This was met with overwhelming support, with 99.97% of participants voting in favor and only 0.03% against.
The transactional tax will be reduced to 0.3% starting 8 PM UTC on Feb 3, and the tokens will be burned permanently at 8 PM UTC on Feb 9, 2023.
The token burn is valued at over $100 million as per CoinGecko. Token burning reduces supply and can increase the value of each token if demand stays constant.
The Floki Inu proposal cites security concerns with bridges as another reason. Cross-chain bridges hold 55.7% of FLOKI’s projected circulating supply, making an exploit on the bridge highly impactful on the project. Cross-chain bridges saw $2 billion lost or stolen in the past year.
Floki Inu initially had a 10 trillion token supply on Ethereum, but in response to community demand, moved to the faster and more cost-effective BNB Chain in 2021. The team had to deploy a new contract with a total of 10 trillion tokens on the BNB Chain.
To keep FLOKI’s circulating supply under 10 trillion tokens and enable users to transfer FLOKI between Ethereum and BNB Chain, a cross-chain bridge was necessary.
Initially, the Floki Inu team utilized 600 billion tokens from their treasury on both Ethereum and BNB Chain as the initial funding for the bridge. However, most holders have since transferred their FLOKI tokens from Ethereum to BNB Chain, where they have locked them.
The team has noted that this has created a balance where the absence of the bridge would not pose a risk to the stability of the project. The developers stated this in their latest proposal.
Floki Inu is up 101% in the last 7 days
Floki Inu has seen significant growth following the announcement of a new burn proposal. Over the past week, the price of Floki Inu has increased by 105% and has spiked 196.9% in the last 30 days. The popular dog-themed project has generated significant attention and excitement among investors.
Floki Inu has recently gained attention in the market. The project is currently ranked 164th, with a market capitalization of $219 million.
At the time of writing, FLOKI is trading at $0.00002357, down by 13% in the last 24 hours.