On Friday, March 1, 2024, Floki announced a significant proposal for a token burn worth $11 million. The proposed burn would involve the destruction of 190,918,585,431.84 Floki tokens, which is equivalent to 2% of the circulation supply.
The main objective of this initiative is to enhance the long-term security and stability of the Floki project. By eliminating the possibility of these tokens being compromised or dumped following integration with another bridge, the project aims to strengthen its overall security measures. Additionally, this token burn would ensure that the tokens are removed from potential future circulation.
It is important to note that the tokens scheduled for destruction were previously allocated for Floki’s collaboration with the cross-chain bridge service Multichain. Initially, the Floki team trusted Multichain, which was widely regarded as the go-to standard for such services. However, further developments led the Floki team to retract the tokens to their own multisig for security precautions. This decision was announced and detailed in a Medium post titled “Floki Update on Multichain Bridge.”
The collapse of Multichain only reaffirmed the wisdom of Floki’s decision to pull out their tokens early. By keeping these tokens in a secure Floki wallet, the team believes that burning them is the best way to ensure they are never used.
The decision to proceed with the token burn now lies with the decentralized autonomous organization (DAO) members. They have the option to vote ‘YES’ to proceed with the burn or ‘NO’ to retain the tokens within Floki’s treasury.
The outcome of the vote will determine the fate of the tokens. If approved, the burn will occur within a week after the voting concludes. This news was distributed by https://pressat.co.uk/ on February 29, 2024.
