Floki DAO proposes massive token burn to secure project stability

Written by

Written on Feb 29, 2024

Reading time 2 minutes

Floki DAO proposes burning 2% of FLOKI tokens, worth $11M.
Tokens sourced from Multichain bridge, withdrawn due to security concerns, now slated for burn.
The proposal subject to democratic Floki DAO vote.

In a recent development within the crypto sphere, the Floki DAO has initiated a groundbreaking proposal aimed at enhancing the security and stability of the FLOKI project.

The proposal, which entails a substantial token burn, seeks to address lingering concerns regarding the integrity of the project’s circulating token supply.

Addressing security concerns with token burn

The Floki DAO’s proposal revolves around the burning of 190,918,585,431.84 FLOKI tokens, equivalent to approximately 2% of the token’s current circulating supply valued at around $11 million. The primary objective behind this bold move is to mitigate potential risks associated with the tokens, ensuring the long-term viability of the Floki ecosystem.

The source of these tokens traces back to an earlier period when Floki maintained a cross-chain bridge with Multichain, a platform that faced significant challenges and eventual collapse.

Recognizing the inherent risks posed by Multichain, the Floki team swiftly withdrew the tokens into the Floki multisig wallet, preempting any potential exploitation.

Despite secure storage, the decision to burn these tokens is driven by the desire to eliminate any residual risk of their re-entry into circulation.

Floki DAO members to decide on the proposal

The proposal is subject to the democratic process of the Floki DAO, where community members have the opportunity to voice their opinions and cast their votes.

If approved, the tokens earmarked for burning will be permanently removed from circulation within a week of the DAO vote passing. Conversely, should the DAO reject the proposal, the tokens will be retained in the Floki treasury for future use, preserving the flexibility of the project’s financial resources.

This latest initiative underscores Floki’s commitment to maintaining the integrity and security of its platform, ensuring a robust foundation for future growth and development.

With the broader crypto market closely monitoring these developments, the outcome of the DAO vote is poised to have some implications on the FLOKI price.