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The proposal to burn 2% of all tokens on the Floki DAO has been launched. 

This is the proposal to permanently burn almost 190 billion Floki tokens out of the 9.5 trillion already in circulation. 

It would be a burn similar to that of January 2023, after which the price went from 8 to 56 millionths of a dollar in about two weeks.

The proposal of an $11 million burn in FLOKI tokens

The new proposal from the DAO would like to burn 190,918,585,431.84 FLOKI tokens, equivalent to about 2% of the current circulating supply of the token. The market value of the burned tokens would be approximately 11 million dollars.

The goals are two:

  • ensure the long-term security and stability of the Floki project by eliminating the risks of these tokens being sold 
  • permanently ensure that these tokens can never enter circulation.

In January of last year, when there was a similar initiative, the burned tokens belonged only to Floki’s native cross-chain bridge. 

However, at that time there was also an active cross-chain bridge with Multichain which was later abandoned. In this second bridge there were approximately 191 billion tokens, which were then withdrawn to the Floki multisig during the year. Multichain collapsed a few months later. 

Since then, these 191 billion tokens have been stored in the Floki Multisig, but the only trustless way to ensure that they can never enter circulation is to burn them.

Therefore, these are not tokens actually in circulation on the markets, but currently on hold. 

Now the proposal will have to be voted on, and if the DAO votes in favor, the 191 billion Floki tokens will be burned within a week of approval. Otherwise, they will be kept in Floki’s treasury for possible future use.

The impact on Floki’s price

After the boom of February last year, the price of the Floki token had dropped back below 16 millionths of a dollar by mid-year, a level much lower than the one after the burn, but still significantly higher than the pre-burn level.

It should be remembered that the maximum price ever reached was 336 millionths, which is a figure more than twenty times higher than the price in mid-2023. 

Floki made his debut on the crypto markets in mid-2021, during a bubble. Its price that year skyrocketed from less than 2 millionths of a dollar to 336, with a gain of 17,000% in just a few months.

However, the bubble then burst, and by 2022 the price returned to 5 millionths, just over twice the initial price. 

The real recovery started only in January 2023, with the first burn, but it was followed by another collapse. 

The last uptrend started at the end of October, bringing the price back to those 56 millionths of a dollar already reached in January of last year. 

While, for example, Ethereum is currently only -29% from its all-time highs, Floki is still at -83%.

After all, its boom in 2021 was due solely and exclusively to the speculative bubble, and it is possible that the recovery in early 2023 and late 2023 is also due only to speculation. 

The Floki Project

The Floki token is essentially a memecoin, born when Elon Musk revealed on Twitter that he had named his Shiba Inu dog Floki.

Even Shiba Inu was born as a memecoin following Musk’s statements, and both follow in the footsteps of Dogecoin. 

However, Dogecoin has its own blockchain, and it was not launched as a result of Musk’s actions or statements. Dogecoin has been around since 2013, and it was only promoted by Musk in 2021.

Yet the fortunes on the crypto markets of DOGE, SHIB, and FLOKI are very similar, precisely because they are speculative cryptos closely linked to what Elon Musk says and does. 

Although they have tried to give the Floki project a broader context, the token has always remained that of a memecoin waiting for some statement from the owner of X to explode on the markets.