On Sunday, March 3, 2024, Floki made an announcement regarding their decision to burn over 190,918,585,431.84 Floki tokens. This equates to two percent of all the Floki tokens currently in circulation, with an estimated value of $24 million, at current prices.
The decision for this large-scale token burn was made by the Floki DAO (Decentralized Autonomous Organization), after the community voted in favor of the action. The execution of the token burn is scheduled to occur within the next seven days.
The primary objectives behind the token burn are to enhance security and control circulation of Floki tokens. By destroying these tokens, Floki aims to fortify its long-term security and mitigate the risk of potential security breaches or sudden market dumps that could occur as a result of their integration with external services. Additionally, the burn is meant to ensure that these tokens are permanently withdrawn from the future circulation pool.
The backstory involving Multichain, a cross-chain bridge service, sheds light on the decision to burn these tokens. The tokens set for burn were initially designated for use through a partnership with Multichain. However, subsequent considerations led to a precautionary measure of withdrawing the tokens to a secure, multisignature wallet managed by Floki. The recent collapse of Multichain has proven that Floki’s decision to pull out their tokens early was wise. 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.
This strategic move by Floki demonstrates their commitment to the safety and security of their community and their tokens. The token burn is a proactive measure to protect against potential risks and to control the circulation of Floki tokens. As the execution of the burn is set to take place within the next seven days, the Floki team remains dedicated to providing updates and ensuring a smooth process for all stakeholders.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.