The canine-centered memecoin Floki is having a roller coaster ride for the past few hours after a crucial proposal was issued by the governing DAO. Often hailed as the Shiba Inu-killer, the token saw a massive price surge of 25% following a community proposal that would burn a colossal number of its circulating tokens.
4.97 Trillion Floki Burn
The developers of Floki Inu have proposed a governance change that would involve the elimination of almost $55 million worth of the project’s namesake FLOKI tokens and a reduction in the tax that is imposed on each transaction. As an additional line of reasoning, the proposal cited the potential safety hazards that are linked with bridges. As per reports, over 2 billion dollars were either misplaced or stolen from cross-chain bridges alone in the past year.
Tokens can be destroyed through a process known as “burning,” which lowers the total supply of tokens in circulation. This, in turn, increases the value of each token so long as demand stays the same.
The proposal stated:
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.
Floki (FLOKI) Price Surge
They went on to say that in the instance of Floki, an attack on their major cross-chain bridge would have a devastating effect on the project due to the fact that the bridge presently carries 55.7% of what FLOKI’s entire circulating supply should be. If this vulnerability is exploited, it will allow the draining of the project’s liquidity pools and will, in effect, bring the project to its knees.
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Floki’s token was first minted on Ethereum, with a total quantity of 10 trillion tokens, before finally extending to the BNB Chain in 2021, touting it to be both faster and cheaper. This expansion was in response to requests from the community.
As a direct result of the brewing bullish sentiment surrounding the token, the market capitalization and 24-hour trading volume 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 being traded at $0.00001316. This represents an increase of 25% in the past 24 hours, in contrast to its 30% jump during the last seven days, as per crypto market tracker CoinMarketCap.
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