Developers of Floki Inu are considering burning 5 trillion FLOKI tokens, worth almost $55 million, to lower the tax on every transaction.
FLOKI’s stock price responded positively and jumped 15% within a matter of hours.
- The memecoin FlokiInu is being developed by the same team that created it. Burn Its bridge tokens (4.97 Trillion assets) will reduce the tax levied for each transaction to 0.3%. Even if all efforts are completed, the maximum circulating supply for FLOKI assets will still be 10 trillion.
“We are aware that the decision to fire the bridge tokens was a significant and permanent one. The developers explained that the decision to burn the bridge tokens is a very significant (and permanent) one.
- Further, the proposal highlighted protection risks associated with cross-chain bridges. The team stated that burning some tokens could decrease the risk of a “catastrophic effect”.
“An exploit on our main crosschain bridge in Floki’s favor would have a devastating impact on the project, as this bridge currently holds 55.7% what FLOKI’s total circulating supplies should be. This amount of tokens is enough to drain the project’s liquidity pools and, essentially, destroy the project.
- A large majority of voters support the initiative.
- Shortly after the plan was announced, FLOKI, the native token of this project, saw a jump of almost 15%. According to CoinGecko data, the current price of FLOKI is $0.00001258.