The canine-centric memecoin Floki has seen a rollercoaster ride in recent hours after a crucial proposal was issued by the DAO. Often touted as the Shiba Inu killer, the token has seen its price rise by 25% following a proposal from the community that would burn a colossal number of its outstanding tokens.
4.97 trillion Floki burned!
Floki Inu developers have proposed a governance change that would involve the elimination of nearly $55 million in namesake FLOKI tokens from the project and a reduction in the tax that is imposed on each transaction. As additional reasoning, the proposal cited the potential security risks that are associated with the bridges. According to reports, more than $2 billion was misplaced or stolen from cross-chain bridges last year.
The tokens can be destroyed by a process called “combustion“, which reduces the total supply of tokens in circulation. This, in turn, increases the value of each token as long as the demand remains the same.
The proposition states:
More exploits and data have emerged to show how much of a threat cross-chain bridges could be, especially if they hold a significant amount of a token’s supply.
The soaring price of Floki (FLOKI)
They went on to say that in the case of Floki, an attack on their main inter-chain bridge would have a devastating effect on the project due to the fact that the bridge currently carries 55.7% of what FLOKI’s total circulating supply should be. If this vulnerability is exploited, it will drain the project’s cash reserves and, in effect, bring the project to its knees.
The Floki token was first minted on Ethereum, with a total quantity of 10 trillion tokens, before finally expanding to the BNB chain in 2021, touting its speed and lower cost. This expansion was in response to community demands.
As a direct result of the bullish sentiment surrounding the token, the market capitalization and 24-hour trading volume have skyrocketed by 20% to $118 million and 37% to $4 million respectively; demonstrating the growing interest in the market. Currently, the price of Floki (FLOKI) is trading at $0.00001316. This represents a 25% increase in the past 24 hours, in contrast to its 30% jump in the past seven days, according to crypto-currency market tracker coingecko.
Pratik has been a crypto evangelist since 2016 & has been through almost everything crypto has to offer. Whether it was the ICO boom, the bear markets of 2018, the bitcoin halving until today – he has seen it all.