coindesk.com
Floki ($FLOKI) developers plan to introduce a staking feature in return for a new utility token, chief developer “B” told CoinDesk in a Telegram message on Wednesday. The staking feature and the new token will increase investor interest in the Floki ecosystem.
The main way to earn the new yet-unnamed token will be by staking $FLOKI tokens, which exchanged hands at $0.000017 as of publication time. There won’t be any pre-sale or fundraising for these tokens, and most of the supply can only be earned by staking $FLOKI.
“Users will be able to earn the reward token by locking up their $FLOKI tokens for a period of between 3 months to 4 years,” B said in the DAO proposal shared with CoinDesk. “We envision this resulting in a significant portion of $FLOKI tokens being locked up for an extended period of time, which will significantly reduce the amount of $FLOKI tokens in circulation and add significant value to the $FLOKI token.”
Staking refers to locking tokens on a platform in return for annualized yield rewards - which may attract investor capital.
B noted that these tokens would eventually be available for active trading on crypto exchanges after reaching a certain market capitalization and liquidity.
The project had hired several new developers to ensure that other Floki-based projects weren’t affected and that the tokenomics of the new token was designed to “ensure long-term development sustainability for this project,” B added.
Floki was fashioned after the popular Shiba Inu dog breed, which spurred the development of popular tokens like dogecoin (DOGE) and shiba inu (SHIB). Dog-themed coins were the hottest tokens in 2021 and surged nearly 10,000% during a nine-month period.
The hype, however, fizzled out as a broader crypto bear market weighed down on riskier bets, leading to tokens such as $FLOKI to fall as much as 94% from their peak.
Floki developers have since worked on building fundamental protocols within the $FLOKI ecosystem to shed the project’s meme coin tag towards a serious DeFi project. Earlier this year, developers released the first part of a metaverse game where players can interact with each other, conduct microtransactions and create a valuable in-game economy.