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- 600 billion tokens were used for the initial funding for the bridge.
- Value of tokens increased by burning the surplus.
- The proposal gained tremendous support from the public
The creators of the Shiba Inu dog breed-themed project Floki Inu have put out a governance proposal to burn nearly $55 million of its namesake FLOKI coins and lower an applicable transaction tax.
With a 10 trillion token supply initially on Ethereum, Floki subsequently moved to the quicker and less expensive BNB Chain in 202,1 in response to community requests.
A new contract with a total quantity of 10 trillion tokens were put into operation by the team on the BNB Chain. To ensure that the FLOKI’s total circulating quantity at any given moment never exceeds a total supply of 10 trillion tokens, as well as to enable users to transfer their FLOKI from Ethereum to BNB Chain and vice versa, this requires a cross-chain bridge.
At that time, the team funded the bridge with 600 billion tokens from its treasury on Ethereum and BNB Chain.
As long as the level of demand stays the same, burning tokens is a method of lowering the supply, which ultimately increases the value of each token. The Floki team wants to establish the project as a strong contender in decentralized finance (DeFi). According to B, a member of the Floki core team, “Floki’s latest DAO vote makes it evident that Floki is more than just a memecoin.”
“Floki has demonstrated a strong focus on utility and fundamentals: through the mainnet release of our FlokiFi Locker protocol and the first major testnet release of our metaverse game Valhalla in a bear market,” the core team member added.
Floki went vocal on Twitter about its proposal and the subsequent changes that would take place if it passes, he stated that “- 4.97 trillion $FLOKI tokens (worth ~$54,670,000) in the Floki bridge will be burnt.The #Floki buy/sell transaction tax would be reduced to 0.3%.”
Another justification given in the plan was the security dangers posed by bridges. According to CoinDesk, over $2 billion was lost or stolen using cross-chain bridges last year.
According to data from the governance forum, as of Friday’s writing, 99% of all voters supported the recently-floated proposition.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
