The burn is expected to destroy 100 quadrillion BABYDOGE tokens on the Ethereum network to bolster the project’s security.
The Baby DogeCoin (BABYDOGE) team has submitted a proposal to burn up to 100 quadrillions of BABYDOGE tokens dormant on Ethereum since the project launched on the network last November. The proposal also seeks to reduce fees for BABYDOGE transactions on Ethereum to 0%.
The team unveiled the proposal today shortly after a Twitter poll suggested that the community agrees with the proposition. Although the poll consented to the proposition, a definite proposal is necessary to ensure that all formalities are observed.
100 Quadrillion burn and 0% fee on ETH proposal is now live to be voted on by the DAO
Vote here: https://t.co/bTWRzcaLmf
To spread awareness of the proposal we will give $500 USDT to 1 winner who:
1. Retweets this tweet
2. Follows @BabyDogeCoin pic.twitter.com/ZzDfuMlG43
— Baby Doge (@BabyDogeCoin) May 9, 2023
According to the proposal, the 100 quadrillion token burn is expected to help enhance the project’s security and mitigate risks of unscrupulous individuals taking advantage of the tokens. The BABYDOGE team noted that the proposed move is in response to concerns raised by the community. The tokens to be burned are worth a whopping $209 million at current rates.
The BABYDOGE Burn Does not Involve Circulating Tokens.
It is important to note that although the tokens to be burned represent part of the asset’s total supply, they are not actually in circulation. This indicates that the burn would have little to no effect on the babydoge price actions the way burns involving circulating tokens would. The primary objective of the burn is security enhancement.
Notably, the team plans to leave some BABYDOGE tokens on the Ethereum network to allow investors to continue to bridge their assets between the Ethereum network and Binance Smart Chain. If the community passes the proposal and the 100 quadrillion tokens are burned, this will leave 85 quadrillions of BABYDOGE on Ethereum for bridging.
Once the proposal passes, BABYDOGE fees on Ethereum will be adjusted to 0% in 24 hours. However, the monumental burn will occur much later, on June 1. The team stressed that the move poses one concern: the fact that if there is an issue with BNB Chain, not all the BABYDOGE tokens will move to Ethereum.
If the proposal passes, this will be the largest burn in history. Besides the proposed burn, the BABYDOGE team remains committed to periodic burns to reduce the asset’s circulating supply. In March, the team burned one quadrillion tokens. The latest burn exercise involved 500 trillion BABYDOGE ($1.3 million) on May 2.
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