Floki Inu DAO Approves Plans to Burn Tokens Worth More Than $100 Million
According to programmers, the proposal was adopted by a 99.97% majority in support of flaming the bridge tokens and 0.03% against it. The 4.2 trillion tokens will be irrevocably burned at 8 PM UTC on February 9, 2023, and the FLOKI transaction tax will be reduced to 0.3% as at 8 PM UTC on February 3. According to data from CoinGecko as of Monday, the planned token burn is valued more over $100 million. As long as the degree of demand stays the same, destroying tokens is a method of lowering the supply, which ultimately increases the worth of each token. As a result, the Floki Inu proposal listed security threats related to bridges as an additional justification. As CoinDesk has reported, nearly $2 billion was lost or stolen using cross-chain bridges just last year." /> “More exploits and data have emerged to show how much of a threat cross-chain bridges could pose, especially if they hold a significant amount of a tokens supply,” the proposal mentioned. Developers included the currently-assessed idea: “In Floki‘s case, an exploit on our main cross-chain bridge would have a catastrophic impact on the project since this bridge currently holds 55.7% of what FLOKI’s total circulating supply should be.