Floki Inu community backs burning of nearly 5 trillion FLOKI as token rises 100%

The Floki Inu community backed the project team’s proposal to close the main cross-chain bridge, burn the 4.97 trillion FLOKI tokens held there, and reduce the transaction tax on the coin to 0.3%.

The #FLOKI DAO has spoken!🦾

The proposal has been passed, with 99.97% voting in favor of the proposal while only 0.03% voted against the proposal.📊

Results🔴

1⃣ Transaction tax will be lowered to 0.3% on 3rd Feb☑️

2⃣ 4.97 trillion $FLOKI tokens will be burned on 9th Feb☑️ https://t.co/lOfohwkhhY

— Whale Coin Talk (@WhaleCoinTalk) January 29, 2023

For the corresponding governance proposal voted by 99.97% of participants DAO by stake.

Developers will implement the transaction-fee reduction on 3 February. The tax will fall from the current 3% to the levels endorsed by the majority of DEX.

The bridge closure and token burning are scheduled for 9 February. The developers previously explained the delay as necessary to give users time to move assets to one of two networks — Ethereum or BNB Chain.

At the time the proposal was submitted on January 27 the value of the tokens to be liquidated was estimated at ~$54.7 million.

By January 29 the token price had risen from $0.000011 to $0.000029 — about 164% (CoinGecko). After a correction, prices fell to around $0.000023; over the last seven days the asset rose 102%.

Originally FLOKI was issued on Ethereum. In 2021 the developers added support for the BNB Chain in response to community requests. To avoid exceeding the total supply cap of 10 trillion tokens, the team launched a cross-chain bridge to transfer tokens between blockchains with a locking mechanism for corresponding asset volumes.

Among the reasons for proposing to close the cross-chain solution, the team cited security considerations. In recent months, such protocols have become one of the main vectors of hacker attacks in the Web3 space.

«In the Floki case, the exploit of our main cross-chain bridge would have catastrophic consequences for the project, as it currently contains 55.7% of the FLOKI in circulation. Thats a LOT of tokens, and more than enough to drain the project’s liquidity pools and essentially destroy it», the developers emphasized at the time.

As a reminder, in 2022 the damage from 167 major attacks in the industry amounted to about $3.6 billion. More than half of the sum was attributed to 12 incidents involving cross-chain bridges.