Floki Inu Skyrockets 25% After Token Burn Proposal

• The meme coin Floki Inu saw a 25% price increase after its governing DAO issued a proposal to burn a large amount of circulating tokens.
• The proposal cited potential safety hazards associated with bridges as an additional reason to burn so many tokens.
• Token burn is a means by which blockchain developers remove some coins permanently from circulation, aiming to reduce the total circulating token supply and increase the asset’s value.

The crypto world has recently been introduced to a new rising coin; Floki Inu. This meme coin was birthed by fans and the SHIB community, and has seen tremendous performance over the past few hours after its governing DAO issued an important developmental proposal. Floki Inu is a strict competitor to Shiba Inu, hence the name “Shiba Inu-Killer”. It is also a people’s cryptocurrency, governed by a decentralized autonomous organization.

The proposal put forth by the Floki Inu team stated that they wanted to burn around $55 million worth of FLOKI tokens from circulation. This token burn would reduce the tax that users pay for transacting on the network, and also address potential safety hazards associated with bridges. Reports have said that over $2 billion either got misplaced or stolen from cross-chain bridges alone in 2022. Seeing the risks associated with bridges, the Floki Inu developers felt it was necessary to implement a token burn in order to protect the networks users.

Token burn is a method used by blockchain developers to remove coins permanently from circulation. It is done in order to reduce the total circulating token supply, and increase the asset’s value as long as the demand does not change. After the proposal was issued, the Floki Inu coin saw a massive price increase of 25%.

The Floki Inu coin is a prime example of how using the token burn method can be incredibly successful in increasing the value of an asset. While the token burn is still in its early stages, its success so far has shown the potential of cryptocurrency’s ability to be used for a larger purpose. With the proposal being so well received by the community, it will be interesting to see how the Floki Inu coin performs in the future.

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