Floki (FLOKI) developers are set to propose burning 2% of the circulating supply of the token to increase scarcity and enhance network security.
Burns refer to permanently removing tokens from the circulating supply by sending them to a crypto wallet that is not controlled by anyone.
Developer B stated that the proposed burn would come from the supply located on the Multichain bridge.
The developers of the popular memecoin project Floki have revealed their plans for burning FLOKI tokens; How many tokens will be burned? Here are the proposal details!
Floki Developers Announce Token Burning Plans
Floki (FLOKI) developers will propose burning 2% of the circulating supply of the token to increase scarcity and enhance network security for the dog-themed crypto platform.
One of the developers said, “We propose burning 190,918,585,431.84 $FLOKI tokens. This roughly equates to about 2% of the current circulating supply of the token, which is currently valued at over 11 million dollars.”
Burns refer to permanently removing tokens from the circulating supply by sending them to a crypto wallet that is not controlled by anyone. Floki previously organized a burning event in January 2023, and at that time, the event took place before the price saw a surge of around 70% within days.
Developer B stated that the proposed burn would come from the supply located on the Multichain bridge. Multichain was a platform that allowed users to transfer tokens across various networks. However, it collapsed in July 2023 after a hack resulted in the loss of over $130 million in stolen funds from the platform.
Floki Shared Details About Multichain Collapse
Floki shared details about the Multichain collapse, stating that they withdrew the tokens before the collapse and have since kept them in a secure wallet. The developer stated, “We noticed some critical situations with Multichain last year and immediately started pulling the bridge tokens with them into the Floki multisig. We believe the only reliable way to ensure they never enter circulation is to burn them.”
Following the news, Floki surged by 13% and is currently trading 10% higher. The CD20 index, measuring the overall crypto market, remained almost unchanged during the same period.
