The Floki Inu community has approved a proposal to burn 4.2 trillion FLOKI tokens worth over $100 million and reduce the transactional tax.
The proposal was passed with a 99.97% majority vote in favor and will be implemented on Feb.9, 2023. The reduction in supply is expected to increase the value of each token if demand remains constant.
The proposal also cites security risks associated with cross-chain bridges as another reason, with over $2 billion lost or stolen from cross-chain bridges in the past year.
The move is part of Floki Inu’s plan to position itself as a serious decentralized finance project and follows the launch of several projects including Floki Locker and Valhalla.
The FLOKI token was initially issued on Ethereum but expanded to BNB Chain based on community requests, requiring a cross-chain bridge to ensure the total circulating supply never exceeded the total supply.
The majority of the tokens have since been transferred to the BNB Chain, reducing the need for the bridge.
