• Floki Inu, a meme coin birthed by fans and the SHIB community, has seen tremendous performance over the past few hours after its governing DAO issued an important developmental proposal.
• The proposal called for the burning of an enormous number of its circulating tokens, which caused a massive price increase of 25%.
• The proposal also cited potential safety hazards associated with bridges as an additional reason to burn so many tokens.
Floki Inu, a meme coin created by fans and the SHIB community, has seen a surge in value over the past few hours due to an important developmental proposal issued by the coin’s governing DAO. The proposal calls for the burning of an enormous number of its circulating tokens, which has caused a massive price increase of 25%. Additionally, the proposal cited potential safety hazards associated with bridges as an additional reason to burn so many tokens.
Reports have indicated that over $2 billion either got misplaced or stolen from cross-chain bridges alone in 2022. As such, the safety reason cited by the developers is valid. Token burn is a means by which blockchain developers remove some coins permanently from circulation. The goal of the process is to reduce the total circulating token supply and increase the asset’s value, provided demand does not change.
With the burning of so many tokens, the value of Floki Inu has skyrocketed. The coin saw a 25% increase in its value following the proposal’s issuance, and the trend appears to be continuing. The token burn is expected to reduce the total circulating supply by nearly $55 million, which should have a positive effect on the coin’s value.
The Floki Inu project is still in its early stages, and the token burn is a major step forward for the project. With the reduction of circulating tokens and the associated positive effect on the coin’s value, the project is showing promise and could potentially become a major player in the crypto space. The community is eagerly awaiting to see what happens next with the project, and the future looks bright for Floki Inu.