Floki Inu DAO Approves Plan To Burn Tokens Worth More Than $100 Million
Key Points:
- A recent governance proposal that aimed to burn 4.2 trillion FLOKI tokens on a cross-chain bridge and lower transactional tax was approved by the Floki Inu community.
- Burning tokens is a way of reducing supply, which subsequently adds value to each token as long as the level of demand remains the same.
- With a 10 trillion token supply initially on Ethereum, Floki subsequently moved to the quicker and less expensive BNB Chain in 2021 in response to community requests.
A recent governance proposal that aimed to burn 4.2 trillion FLOKI tokens on a cross-chain bridge and lower transactional tax was approved by the Floki Inu community.
According to developers, the proposal was approved by a 99.97% majority in support of burning the bridge tokens and 0.03% against it. The 4.2 trillion tokens will be permanently burned at 8 PM UTC on February 9, 2023, and the Floki Inu transaction tax will be reduced to 0.3% as at 8 PM UTC on February 3.
Burning tokens is a way of reducing supply, which subsequently adds value to each token as long as the level of demand remains the same.
“More exploits and data have emerged to show how much of a threat cross-chain bridges could pose, especially if they hold a significant amount of a token’s supply,” the proposal stated.
“In Floki’s case, an exploit on our main cross-chain bridge would have a catastrophic impact on the project since this bridge currently holds 55.7% of what FLOKI’s total circulating supply should be. This is a lot of tokens, and that’s more than enough to drain the project’s liquidity pools and essentially destroy the project if exploited,” developers added in the now-assed proposal.
The Floki Inu bridge
With a 10 trillion token supply initially on Ethereum, Floki Inu subsequently moved to the quicker and less expensive BNB Chain in 2021 in response to community requests.
A new contract with a total quantity of 10 trillion tokens had to be put into operation by the team on the BNB Chain. But in order to prevent the FLOKI’s total circulating quantity from ever going above a total supply of 10 trillion tokens and to enable users to move their FLOKI from Ethereum to BNB Chain and vice versa, this required a cross-chain bridge.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Author
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Floki Inu DAO Approves Plan To Burn Tokens Worth More Than $100 Million
Key Points:
- A recent governance proposal that aimed to burn 4.2 trillion FLOKI tokens on a cross-chain bridge and lower transactional tax was approved by the Floki Inu community.
- Burning tokens is a way of reducing supply, which subsequently adds value to each token as long as the level of demand remains the same.
- With a 10 trillion token supply initially on Ethereum, Floki subsequently moved to the quicker and less expensive BNB Chain in 2021 in response to community requests.
A recent governance proposal that aimed to burn 4.2 trillion FLOKI tokens on a cross-chain bridge and lower transactional tax was approved by the Floki Inu community.
According to developers, the proposal was approved by a 99.97% majority in support of burning the bridge tokens and 0.03% against it. The 4.2 trillion tokens will be permanently burned at 8 PM UTC on February 9, 2023, and the Floki Inu transaction tax will be reduced to 0.3% as at 8 PM UTC on February 3.
Burning tokens is a way of reducing supply, which subsequently adds value to each token as long as the level of demand remains the same.
“More exploits and data have emerged to show how much of a threat cross-chain bridges could pose, especially if they hold a significant amount of a token’s supply,” the proposal stated.
“In Floki’s case, an exploit on our main cross-chain bridge would have a catastrophic impact on the project since this bridge currently holds 55.7% of what FLOKI’s total circulating supply should be. This is a lot of tokens, and that’s more than enough to drain the project’s liquidity pools and essentially destroy the project if exploited,” developers added in the now-assed proposal.
The Floki Inu bridge
With a 10 trillion token supply initially on Ethereum, Floki Inu subsequently moved to the quicker and less expensive BNB Chain in 2021 in response to community requests.
A new contract with a total quantity of 10 trillion tokens had to be put into operation by the team on the BNB Chain. But in order to prevent the FLOKI’s total circulating quantity from ever going above a total supply of 10 trillion tokens and to enable users to move their FLOKI from Ethereum to BNB Chain and vice versa, this required a cross-chain bridge.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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