FLOKI witnessed a price rally of 10%, leading other notable meme crypto such as Shiba Inu and Pepe coin. The uptick in price is signaling to investors that another bullish event is at play here.
Floki DAO’s Decisive Token Burn Proposal
The positive market performance of Floki follows the latest proposal from Floki DAO. The memecoin’s decentralized autonomous organization recently published a token burn proposal. The proposal aims to permanently remove over 15 billion FLOKI from circulation.
NEW DAO PROPOSAL: BURN 15,246,000,000 $FLOKI TOKENS
A new Floki DAO proposal just went live on whether or not to burn 15,246,000,000 $FLOKI tokens.
Please read the proposal and vote here 👇👇👇https://t.co/UVzQdYQUpu pic.twitter.com/j1mi6XrVZ0
— FLOKI (@RealFlokiInu) May 13, 2024
The move flowed from efforts to address the surplus tokens recovered from a blacklisted wallet. The DAO is swiftly responding to the situation in line with its decentralized ethos.
Notably, the recent proposal was driven by a desire to incentivize affected wallets to return excess tokens, thereby reducing supply and enhancing scarcity. By returning 1% of the tokens to the affected party and burning the rest, the DAO aimed to align with community expectations and maintain fairness in token distribution.
Shiba Inu’s Parallel Initiative and Market Impact
Floki’s rival Shiba Inu similarly put forward a proposal to burn 410 million KNINE tokens. This is to commemorate Ethereum co-founder Vitalik Buterin’s historic burn of a massive chunk of Shiba Inu (SHIB) in 2021. Currently, SHIB burn rate is up 127% amid bullish sentiments.
The Floki community gave overwhelming support to the proposal, with 99.84% of voters in favor of the token burn. This decisive outcome reflects the community’s confidence in the DAO’s decision-making process and its commitment to safeguarding the project’s integrity.
With the approval of the token burn proposal, 15,246,000,000 $FLOKI tokens, currently valued at approximately $2.8 million, will be permanently removed from circulation. This strategic move enhances the scarcity of $FLOKI, potentially contributing to price appreciation over time.
Going by the current rating on votes, only 723 million Floki, representing 0.16% percent kicked against the proposed burn. With voting expected to end on May 15, it is obvious to market watchers that the burn will be carried out.