Floki Inu developers contemplate burning nearly 5 trillion FLOKI tokens (worth almost $55 million) to reduce the tax applied on each transaction.
FLOKI’s price reacted positively, surging 15% in a few hours.
- The team behind the popular memecoin Floki Inu might burn its bridge tokens (4.97 trillion assets) and thus shrink the tax levied on each transaction to 0.3%. The maximum circulating supply of FLOKI will remain at 10 trillion assets even if the effort gets completed.
“We understand that the decision to burn the bridge tokens is a very significant (and permanent!) decision and the ETH chain has a higher percentage of circulating supply, so we would be happy to help large holders who want to bridge over to BSC do so manually before the burn,” the developers stated.
- The proposal further displayed protection risks related to cross-chain bridges. Burning some of the tokens could reduce the chance of a potential “catastrophic impact,” the team added:
“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.
- The overwhelming majority of the voters have declared their support of the initiative.
- The native token of the project – FLOKI – spiked by almost 15% shortly after the plan was aired. Currently, it trades at a 5-month high of $0.00001258 (according to CoinGecko’s data).
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