In a move to enhance the security of its project, Floki has proposed a substantial token burn worth $11 million. The announcement was made on February 29, 2024, and involves the destruction of 190,918,585,431.84 Floki tokens, which is equivalent to 2% of the circulation supply.
The primary objectives of this proposed burn are to increase the long-term security and stability of the Floki project and to remove these tokens from potential future circulation. These tokens were originally allocated for Floki’s collaboration with the cross-chain bridge service Multichain.
Initially, the Floki team had trusted Multichain, which was widely regarded as the leading standard for such services. However, further developments led to the team retracting the tokens to their own multisig for security precautions. This decision was announced and detailed in a Medium post titled “Floki Update on Multichain Bridge.”
The collapse of Multichain served as validation for Floki’s decision to pull out their tokens early. By keeping these tokens in a secure Floki wallet, the team believes that burning them is the best way to ensure they are never used.
The decision to proceed with the burn now lies in the hands of Floki’s decentralized autonomous organization (DAO) members. They have the option to vote ‘YES’ to proceed with the burn or ‘NO’ to retain the tokens within Floki’s treasury.
The outcome of the vote will determine the fate of the tokens. If approved, the burn will take place within a week after the voting concludes. This proposed token burn is a significant step towards strengthening the security and stability of the Floki project, and the Floki team is confident that it will benefit the project in the long run.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.