On Sunday March 3, 2024, Floki made a significant announcement regarding the burning of over 190,918,585,431.84 Floki tokens. This decision was made by the Floki DAO (Decentralized Autonomous Organization), following a community vote in favor of the action.
The token burn, estimated to be worth $24 million at current prices, will involve the destruction of two percent of all Floki tokens currently in circulation. This strategic move is aimed at achieving two key objectives.
Firstly, the token burn will enhance the long-term security of Floki. By permanently eliminating these tokens, the risk of security breaches or market dumps due to their integration with external services will be mitigated.
Secondly, the burn will also ensure that the tokens are permanently removed from future circulation, giving Floki more control over its token supply.
The decision to burn these tokens follows a precautionary measure taken by Floki to withdraw them from their initial partnership with Multichain, a cross-chain bridge service. Despite initially trusting Multichain’s services, the Floki team decided to withdraw the tokens to a secure, multisignature wallet managed by Floki.
The recent collapse of Multichain validated Floki’s decision to withdraw their tokens early. With the tokens now safely stored in a secure Floki wallet, the team believes that burning them is the best course of action to ensure they are never used.
This announcement was distributed by the reputable press release distribution agency, https://pressat.co.uk/, on March 2, 2024. The execution of the token burn is scheduled to take place within the next seven days.
