• Floki Inu, a meme coin birthed by fans and the SHIB community, has joined the class of rising coins.
• After the developers proposed a change in governance to burn an enormous number of its circulating tokens, FLOKI saw a massive price increase of 25%.
• Token burn is a means by which blockchain developers remove some coins permanently from circulation to reduce the total circulating token supply and increase the asset’s value.
Floki Inu has recently surged in the crypto market, becoming one of the hottest rising coins. The 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. Nicknamed the “Shiba Inu-Killer”, Floki is the people’s cryptocurrency, and the proposal issued by its developers aimed to burn an enormous number of its circulating tokens.
The proposal cited potential safety hazards associated with bridges as one of the reasons to burn so many tokens. Reports stated that over $2 billion has been either misplaced or stolen from cross-chain bridges alone in 2022, indicating the risks from such bridges, especially ones with a large amount of tokens. After the proposal, FLOKI saw an immediate surge of 25%, making it one of the hottest digital assets in the market.
The developers’ proposal also included a change in governance that would reduce the tax that users pay for transacting on the network. The 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. This process is usually successful if the demand for the asset does not change.
Floki Inu’s developers have made it clear that they are striving to make the coin as secure as possible by removing risks from cross-chain bridges. They have also proposed to reduce the transaction fees on the network, making it an attractive investment option. With the proposal’s success, FLOKI is likely to see further price appreciation in the days to come.