Floki Proposes to Burn Its Own Tokens
Floki Inu, the Shiba Inu dog breed-themed project, has floated a governance proposal to burn nearly $55 million of its namesake FLOKI tokens and reduce a transaction tax.
The Floki team hopes to position the project as serious decentralized finance (DeFi) contender. “Floki’s latest DAO vote makes it clear that Floki is more than just a memecoin,” B, a Floki core team member told.
“Floki has demonstrated a strong focus on utility and fundamentals: through the mainnet release of our FlokiFi Locker protocol and the first major testnet release of our metaverse game Valhalla in a bear market,” the core team member added.
The proposal also pointed out security risks associated with bridges as another rationale. “More exploits and data have emerged to show how much of a threat cross-chain bridges could pose, especially if they hold a significant amount of a token’s supply,” the proposal stated.
“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 FLOKI’s total circulating supply should be. This is a lot of tokens, and that’s more than enough to drain the project’s liquidity pools and essentially destroy the project if exploited,” they added.
If this proposal is approved, the FLOKI tokens in the Floki bridge will be burned, and the self-imposed buy and sell tax on each transaction will be reduced to 0.3%. The bridge would also be rendered inoperable indefinitely.
According to the governance forum, the newly-floated proposal received overwhelming support from 99% of all voters.
Floki launched its token on Ethereum with a total supply of 10 trillion tokens before moving to the faster and cheaper BNB Chain in 2021 in response to community requests.
The team was forced to create a new contract on the BNB Chain with a total supply of 10 trillion tokens. However, this required a cross-chain bridge to ensure that the FLOKI’s total circulating supply at any given time never exceed a total supply of 10 trillion tokens and to allow for users to transfer their FLOKI from Ethereum to BNB Chain and vice versa.
(With inputs from Shikha Singh)
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