• Floki Inu developers have proposed a governance vote to burn $55M of its tokens.
• This move is part of a broader effort to position Floki Inu as a serious DeFi project.
• Burning tokens is a way of reducing supply, and consequently, increasing the value of each token.
Floki Inu, the Shiba Inu dog breed-themed project, is making a serious push towards becoming a major DeFi contender, proposing a governance vote to burn nearly $55 million of its namesake FLOKI tokens and reduce a transaction tax.
The move to burn tokens is seen as a way of reducing supply, which subsequently adds value to each token as long as the level of demand remains the same. The Floki development team has made it clear that they are more than just a meme coin and are committed to utility and fundamentals. This was demonstrated by the mainnet release of the FlokiFi Locker protocol and the first major testnet release of their metaverse game Valhalla in a bear market.
The proposal also cited security risks associated with bridges as another reason to burn the tokens. Last year saw over $2 billion lost or stolen from cross-chain bridges, as CoinDesk reported. As such, the Floki team believes that burning the tokens will considerably reduce the risk associated with such bridges.
The development team also believes that burning the tokens will lead to increased liquidity for the project, leading to improved market efficiency and further user engagement. In addition, the development team is confident that the burn will result in increased user adoption of the Floki Inu platform, as well as of its token. This, in turn, will also lead to improved liquidity for the platform.
The Floki team is optimistic that this move towards burning tokens will help position the project as a serious DeFi contender, and they are hopeful that their proposal will receive the necessary votes to pass. If passed, the project could see a significant boost in its value, as the total amount of tokens in circulation will be reduced, and demand for them will increase.