Floki Its developers are presenting a proposal to burn 2% of the circulating supply of the meme coin in order to reduce its current supply and increase network security.
“We propose to burn 190,918,585,431.84 FLOKI tokens,” lead developer B commented in a Telegram message to CoinDesk. “This amounts to approximately 2% of the token’s current circulating supply, which is currently valued at over $11 million.”
Burns mean removing tokens from the circulating supply by sending them to a crypto wallet that no one controls. Floki previously held a burn event in January 2023 and recorded a 70% increase in its price in the days after this event.
Developer B stated that they plan to source the tokens proposed for burning from the supply stored on the Multichain bridge. Multichain was a platform that allowed users to transfer tokens between various networks, but it imploded in July 2023 after an exploit stole over $130 million in funds from the platform.
As we reported as Koinfinans.com, Floki announced that he removed the tokens before the major problems in Multichain and kept them in a secure wallet since then.
B commented, “Last year, we noticed a few problems with Multichain and started withdrawing our bridge tokens to Floki multisig as quickly as possible.” The developer argues that these tokens should be burned to prevent them from entering circulation.
Floki rose as much as 13% following the news and recently traded 10% higher, according to CoinDesk data.
