coindesk.com
Floki developers propose burning 2% of the circulating supply to increase scarcity and network security.
The burn will utilize tokens from the Multichain Bridge, which previously held tokens prior to its implosion in July 2023.
Floki (FLOKI) developers will float a proposal to burn 2% of the token’s circulating supply to increase scarcity and bump network security for the dog-themed crypto platform.
“We’re proposing a burn of 190,918,585,431.84 $FLOKI tokens,” lead developer B told CoinDesk in a Telegram message. “That’s around 2% of the token’s current circulating supply, which is currently worth over $11 million.”
Burns refers to permanently removing tokens from circulating supply by sending them to a crypto wallet that no one controls. Floki previously conducted a burn event in January 2023, which preceded a 70% price spike in the days afterward at the time.
Developer B said that the tokens for the proposed burn will originate from the supply stored on the Multichain bridge. Multichain was a platform that let users transfer tokens between various networks – but imploded in July 2023 after an exploit saw over $130 million in funds stolen from the platform.
Floki said it had removed tokens prior to Multichain’s implosion and has since held those in a secure wallet.
“We noticed a few red flags with Multichain last year and immediately proceeded to withdraw the bridge tokens we had with them into the Floki multisig,” B shared. “We believe that the only trustless way to guarantee that they NEVER enter into circulation is to burn them.”
FLOKI prices are up nearly 8%, in line with a broader market spike. The broader CoinDesk 20 index (CD20) is up 7.5% since Wednesday.