The developers of the dog-themed cryptocurrency platform Floki (FLOKI) will put out a proposal to burn 2% of the token’s current supply in order to boost network security and create scarcity.
Lead developer B posted on Telegram, stating, “We’re proposing a burn of 190,918,585,431.84 $FLOKI tokens.” That equates to about 2% of the token’s current market value, which is more than $11 million.
Burning is the process of transferring tokens to an anonymous cryptocurrency wallet in order to permanently remove them from circulation. A 70% price increase in the days that followed Floki’s January 2023 burn event, which was previously held.
According to Developer B, the quantity of tokens kept on the Multichain bridge will be the source of tokens for the planned burn. Multichain was a platform that allowed users to move tokens between different networks; nevertheless, it collapsed in July 2023 due to a vulnerability that resulted in the theft of approximately $130 million from the platform.
Prior to Multichain’s collapse, Floki claimed to have taken tokens and to have kept them ever since in a safe wallet.
“Last year, we saw some red flags with Multichain and we moved quickly to remove the bridge tokens we had with them into the Floki multisig,” B said. “We think burning them is the only reliable way to ensure that they never end up in circulation.”. Following the news, Floki surged as much as 13% and was recently trading 10% higher. A measure of the larger cryptocurrency market, the CD20, saw minimal movement during that time.