Floki proposes massive token burn worth $11 million to strengthen project security
February 29, 2024: Floki has announced a significant token burn proposal. This proposed burn involves destroying 190,918,585,431.84 Floki tokens, equivalent to 2% of the circulating supply, worth approximately $11 million.
This initiative aims to achieve two main goals:
- It strengthens the long-term security and stability of the Floki project by eliminating the possibility of these tokens being compromised or destroyed after integration with other bridges.
- Ensures that these tokens are removed from potential circulation in the future.
It is worth noting that the tokens scheduled for retirement are tokens previously allocated for Floki’s collaboration with cross-chain bridge service Multichain.
Initially, the Floki team trusted Multichain, which is widely known as the standard for such services. Nonetheless, further developments led the Floki team to withdraw the token into its own multi-signature for security precautions. This decision was announced and detailed in the Medium post Floki Update on Multichain Bridge.
The multichain collapse proved Floki’s decision to reclaim tokens early was wise. The team believes that by storing these tokens in a secure Floki wallet, burning them is the best way to ensure they are never used.
Floki now leaves the decision to its Decentralized Autonomous Organization (DAO) members, who have the option to vote ‘yes’ to proceed with the burn, or ‘no’ to keep the tokens in Floki’s treasury.
The voting results will determine the fate of the tokens. If approved, burning will occur within a week after voting ends.
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