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- The Floki Inu community voted to back the newest governance offer that desired to burn 4.2 trillion FLOKI tokens on a cross-chain bridge and lessen transactional tax.
- The offer got acceptance with a 99.97% majority in favor of burning the bridge tokens at the time, and 0.03% voted against the offer, creators stated.
- The FLOKI transaction tax will be downed to 0.3% effective 8 p.m. UTC on February 3, 2023, at the time the 4.2 trillion tokens will be forever burnt at 8 p.m. UTC on February 9, 2023.
The tentative token burn is valued at more than $100 million as of January 30, the data from CoinGecko reveals. Burning tokens is done to lessen the supply, which after a while adds worth to each token all in all the level of demand is still the same.
Fundamentally, the Floki Inu offer highlighted security risks linked with bridges as another rationale. The year 2022, solely witnessed more than $2 billion lost or stolen from cross-chain bridges.
“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 token’s supply,” the offer writes.
“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. This is a lot of tokens, and that’s more than enough to drain the project’s liquidity pools and essentially destroy the project if exploited,” creators added in the now-assed offer.
The Floki bridge
Creators of Floki Inu, a Shiba Inu meme coin, the step was a portion of a wider plan towards placing Floki Inu as a serious decentralized finance (DeFi) project. The team has introduced going on projects like Floki Locker and the metaverse game Valhalla in the last few months.
Floki originally issued its token on Ethereum with a complete supply of 10 trillion tokens, before in the end elaborating on the swifter and cheaper BNB Chain in 2021 based on community appeals. The team has to introduce another contract on the BNB Chain with its own complete supply of 10 trillion tokens. Although, this needed a cross-chain bridge to make sure that the FLOKI’s complete circulating supply at any given time never surpass a total supply of 10 trillion tokens and to permit users to give their FLOKI from Ethereum to BNB Chain and vice versa.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
