In a strategic move to bolster the value and security of the Floki (FLOKI) cryptocurrency, the development team has announced plans to burn 190 billion FLOKI tokens. This initiative aims to remove approximately 2% of the token’s circulating supply from the market, a move valued at over $11 million.
A Strategy for Scarcity and Security
The proposed token burn is designed to increase the scarcity of FLOKI tokens and enhance the network’s security. By permanently eliminating a significant portion of the tokens from circulation, the developers hope to create a more robust and valuable ecosystem for the dog-themed cryptocurrency platform.
Source of the Tokens for the Burn
The tokens set for the burn come from the supply previously stored on the Multichain bridge, a platform that facilitated token transfers across different networks. However, following a security breach in July 2023 that led to the loss of over $130 million, Floki developers decided to withdraw their tokens from Multichain. These tokens have since been kept in a secure, multisignature wallet to prevent them from entering circulation.
Positive Market Reaction
Following the announcement of the token burn, the price of FLOKI experienced a significant uptick, climbing as much as 13% and recently trading 10% higher. This positive market response underscores the community’s support for measures aimed at enhancing the token’s value and the overall security of the Floki network.
