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- Network developers strengthen committees for Floki Inu’s growth with the introduction of a new proposal.
- According to the network’s lead developer, the proposal is calling for a 2% burn of the Floki Inu circulating supply.
Floki has reiterated its commitment to network development and advancement by consistently burning Floki tokens. In its most recent announcement, network developers revealed that a proposal to burn a significant portion of Floki Inu’s token supply is underway. The proposal seeks to reduce the token’s supply by burning 2% of its exchange supply.
As the lead developer B explained, the proposal, if approved, will result in a burn of more than 190 billion FLOKI tokens. At report time, the estimated value is above $ 11 million.
“We’re proposing a burn of 190,918,585,431.84 $FLOKI tokens. That’s around 2% of the token’s current circulating supply, which is currently worth over $11 million.” B told CoinDesk in a telegram message.
Token burns are extremely beneficial for network growth. When tokens are burnt, the current circulation supply of tokens is reduced significantly. The burnt tokens are then sent to a crypto wallet that is not in use.
The result of topic burns has historically been positive for tokens, as a reduction in supply causes deflationary effects. This further positions the asset as a more attractive option for investors and traders alike. In the long term, demand for said asset might increase and prices are expected to follow suit.
TVL soars as Floki continues to build momentum
In Floki’s case, an estimated 70% price increase was recorded after its token burn was carried out in January of 2023. The developer also disclosed that Floki Inu has been working toward preserving its network by tackling existing issues.
To preserve network strength, a major change was made to the network. As the developer revealed, bridge tokens were removed and scored in a safe wallet, long before the collapse of Multichain.
“We noticed a few red flags with Multichain last year and immediately proceeded to withdraw the bridge tokens we had with them into the Floki multisig. We believe that the only trustless way to guarantee that they NEVER enter into circulation is to burn them.” The developer asserted.
The Floki Inu token has reacted positively to the new development as prices soared briefly after the news broke. Notably, Floki surged by a whopping 13% after the developer’s revelation made its way to community members. The price upsurge further resulted in a 10% increase in the asset’s value before it took a downturn.
As a memecoin, Floki has managed to stay afloat, despite the continued bearish sentiments surrounding memecoins. Total Value Locked (TVL) is one such metric that depicts major growth in network activity as it surged past $105 million. At report time, Floki was down by 3.79% and traded at $0.00005433 per coin.
