While crypto investors watched a stagnant DOGE and Shiba Inu today, a rival meme coin was bullish on news of the token burn.
DOGE and SHIB are stagnant, this meme coin is rallying 20%
The developers behind Floki Inu (FLOKI), one of the biggest projects in the meme coin market, submitted a management proposal today to burn approximately $55 million in FLOKI and reduce the fee charged for each transaction. According to the proposal, the team is considering burning about 5 trillion FLOKI (worth approximately $55 million) to reduce the fees charged on each transaction.
The announcement was made and pinned on Floki Inu’s Twitter account in the early hours of January 27th. With this management proposal, the Floki team hopes to position the project as a serious DeFi player. “Floki’s recent DAO vote makes it clear that Floki is more than just a meme coin,” said one of the Floki core team members. The impact of the news had an impact on the price as expected…
#Floki's latest DAO proposal is live!
If this proposal passes:
– 4.97 trillion $FLOKI tokens (worth ~$54,670,000) in the Floki bridge will be burnt.
– The #Floki buy/sell transaction tax would be reduced to 0.3%.Read the full proposal and vote here:https://t.co/nmx4cxJ6v1
— FLOKI (@RealFlokiInu) January 26, 2023
Floki Inu (FLOKI) price rises over 20%
FLOKI’s price reacted positively to the announcement and gained around 15% within a few hours. Ranking 234th by market cap, the meme coin maintains most of its gains during the day. At the time of writing, it is trading at $0.00001315, up 20% from the last 24 hours. According to the cryptokoin.com data, the 24-hour trading volume increased by around 30% during this time.
FLOKI steps up pressure on DOGE and Shiba Inu
With his last move, Floki Inu is one step closer to his rival Shiba Inu in terms of token burning. The team behind Floki Inu aims to burn bridge tokens (4.97 trillion tokens), thus reducing the fee to 0.3% from each transaction. Let’s point out that the maximum circulating supply of FLOKI will remain as 10 trillion tokens even if this move is completed. An overwhelming 99% of the community supports the nascent proposal, according to the management forum’s statements. This was a sign that the community had high expectations for the meme coin.
Floki is now more balanced between Ethereum and BNB Chain
Floki initially issued on Ethereum with a total supply of 10 trillion tokens and eventually moved to BNB Chain, a faster and more economical network in 2021 based on community requests. The team had to launch another contract on BNB Chain with its own total supply of 10 trillion tokens. However, this required a cross-chain bridge to ensure that at any time FLOKI’s total circulating supply never exceeded the total supply of 10 trillion tokens, allowing users to transfer their FLOKI from Ethereum to BNB Chain and vice versa.
At that time, the team used 600 billion tokens in Ethereum and BNB Chain from its treasury to raise the initial funds for the bridge. Since then, most investors have locked their FLOKI tokens in Ethereum and transferred them to BNB Chain. “As a result, while the majority of the supply is still on ETH, there is now such a balance that the absence of a bridge will not threaten the stability of the project,” the developers wrote in the proposal.
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