• Floki Inu, a meme coin, has seen a surge in price due to a development proposal to burn a large number of tokens.
• The proposal was aimed to reduce the tax users pay for transacting on the network, as well as reduce the potential security concerns associated with cross-chain bridges.
• After the proposal, FLOKI saw a 25% price increase.
Floki Inu, a meme coin birthed by fans and the SHIB community, has seen tremendous performance over the past few hours. This success has been attributed to a development proposal issued by the coin’s governing DAO. This proposal proposed to burn an enormous number of its circulating tokens, in order to reduce the tax users pay for transacting on the network, as well as reduce the potential security concerns associated with cross-chain bridges.
The proposal was released to much anticipation, as the coin is a strict Shiba Inu competitor, hence the name “Shiba Inu-Killer.” Being the people’s cryptocurrency (governed by a decentralized autonomous organization), Floki received a community proposal to burn a large number of its tokens. Reports stated that over $2 billion either got misplaced or stolen from cross-chain bridges alone in 2022, which further reinforces the importance of the proposal.
Token burn is a means by which blockchain developers remove some coins permanently from circulation. It aims to reduce the total circulating token supply and increase the asset’s value, provided demand does not change. Therefore, the proposal was seen as a positive by the crypto community, and the results soon followed. After the proposal was issued, FLOKI saw a massive price increase of 25%.
The success of Floki Inu is a testament to the power of decentralized governance. The proposals that are made by the community are taken seriously, and the results are evident. Floki Inu has become a major player in the crypto space and is expected to continue its success. With the proposed token burn, the coin’s value is expected to increase further, as the supply of tokens decreases. If the proposal is implemented, the coin is expected to become even more valuable and the community should continue to benefit from it.
