Floki Team Teases Proposal to Burn 190,918,585,431 Tokens Amid 100% Price Jump

The group of developers behind the Floki project plans to burn around 2% of the asset’s circulating supply, amounting to 190,918,585,431 tokens.

The price of Floki has jumped 100% in the past month, outperforming most cryptocurrencies within this timeframe. Amid the growth, the project’s developers look set to champion a new proposal that could further propel prices northward.

A member of the Floki team confirmed that the project plans to float a proposal to burn 190.9 billion FLOKI tokens around 2% of the cryptocurrency’s supply. The permanent reduction of the supply in this manner is meant to serve two purposes, according to Floki’s developers.

DAO PROPOSAL: BURN 190,918,585,431.84 FLOKI TOKENS

There is a new Floki DAO proposal that will affect the future and stability of the $FLOKI project.

Please read the full proposal and vote here:https://t.co/Ue6OgIFDK9 pic.twitter.com/Gv9YHDGabX

— FLOKI (@RealFlokiInu) February 29, 2024

First, the move will enhance the scarcity of the token. In a supply and demand-driven market such as the cryptocurrency space, a reduction in Floki’s circulating supply could potentially bolster the value of existing tokens. The assets to be burned if the proposal gains approval are estimated at around $11 million at today’s prices.

The second objective of the proposed burn is to enhance security for the project. The projected burn supply will be sourced from the now-defunct Multichain bridge, which was infamously hacked in 2023. Removing the tokens on the collapsed bridge eliminates any risk of future security exploits.

Will the Burn Lead to a Floki Bull Run?

News of a potential reduction in the circulating supply of Floki has raised questions about a possible jump in the price of the asset. Rightly, the price of FLOKI spiked 70% when the project executed a similar initiative in January 2023.

However, there is no clear way to determine whether the upcoming burn will impact prices positively. For one thing, the January 2023 burn involved a large amount of tokens, valued at over $100 million. 

On the other hand, the crypto market appears to be generally bullish as the market speculates on various assets, reaching new highs. The growing market euphoria could play in FLOKI’s favor.

Earlier this week, the token jumped after a market maker pledged $10 million to buy the dog-themed cryptocurrency. If the hype continues, FLOKI may see a significant rise, perhaps regaining lost ground from its current position as the 130th largest crypto by market cap.