The developers behind Floki Inu ($FLOKI), the Shiba Inu (SHIB) dog breed-themed digital currency project, have proposed an ambitious proposition to burn nearly $55 Million of its FLOKI crypto tokens and reduce a transaction tax. This move intends to position Floki as a serious decentralized finance (DeFi) contender and address security dangers associated with cross-chain bridges.
The idea of creating this digital currency was born on 25 June 2021 after Dogecoin (DOGE) ($DOGE) advocate Elon Musk (Tesla & SpaceX CEO) tweeted that the name of his Shiba Inu (SHIB) dog would be “Floki”.
FLOKI is the utility crypto token of the Floki ecological system, which “offers a 3D Non-Fungible Token (NFT) Metaverse network, Decentralized Finance utilities, a cryptocurrency education platform, Non-Fungible Token (NFTs), a merchandise store, and more.”
Reports by a report by CoinDesk, the proposal, which was put to the vote between FLOKI holders, argues that burning crypto tokens is a way to lower supply, which following that adds value to each crypto token so long as demand remains constant. Additionally, the Floki team hopes that by taking this step, they can demonstrate a strong focus on utility and fundamentals, which will assist the project stand out in the crowded Decentralized Finance market.
In a statement to CoinDesk, a member of the Floki core team stated, “Floki’s latest DAO vote clarifies that Floki is greater than just a memecoin. We’ve already released our FlokiFi Locker protocol on the mainnet and the 1st major testnet release of our metaverse network game Valhalla in a bear market.”
The proposition likewise highlighted the security dangers associated with cross-chain bridges, which have been the subject of much debate in the cryptocurrency community. A year ago, over $2 billion was lost or stolen from these types of bridges, as CoinDesk informed. The Floki team claimed that an exploit on their main cross-chain bridge would have a catastrophic impact on the project since it as of now holds 55.7 percent of what FLOKI’s total circulating supply should be.
If the proposition is passed, around 4.97 trillion FLOKI crypto tokens would be burnt, and the 3 percent buy and sell tax FLOKI transaction tax would be reduced to 0.3%. Furthermore, the main cross-chain bridge would be permanently disabled.
Reports by the governance forum, as of 12:00 p.m. UTC on 28 January 2023, 99.97 percent of all voters supported the proposal.
Data from TradingView shows that as of now (as of 12:17 p.m. UTC on 28 January 2023) $FLOKI is trading around $0.0000163456, up 23.3 percent in the past 24-hour period. Even more impressively, $FLOKI is up 101.5 percent in the year-to-date (YTD) period.
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