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Floki Developers Plan To Burn $11 Million Worth Of Tokens, Reducing Supply By 190 Billion FLOKI

source-logo  cryptonews.net 29 February 2024 14:48, UTC

The developers of Floki (FLOKI) are proposing to burn 2% of the circulating supply of tokens to increase scarcity and improve network security. The lead developer told CoinDesk that they are proposing to burn $190,918,585,431.84 of $FLOKI. That’s around 2% of the token’s current circulating supply, which is currently worth over $11 million. According to CoinDesk, Floki rose 13% following the news. The CD20, a gauge of the broader cryptocurrency market, was little changed over the same period.

Burning refers to the final removal of tokens from circulation by sending them to a crypto wallet that no one controls. Floki previously held an asset burn event in January 2023, which preceded a 70% price jump in the following days.

The developer stated that the tokens for the proposed burn will be obtained from the reserves stored on the Multichain bridge. Multichain was a platform that allowed users to transfer tokens between different networks, but collapsed in July 2023 after an exploit caused over $130 million in funds to be stolen from the platform. Floki stated that it deleted the tokens before the Multichain collapse and has been storing them in a secure wallet since then.

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