Dog-themed meme coin floki inu soared in price following a community proposal that would burn 4.97 trillion tokens.
Floki Inu was trading up 14% to $0.000012 at 6:06 a.m. EST, according to TradingView data. The token price was initially buoyed by the community proposal, which is currently being voted on.
The governance proposal would see 4.97 trillion floki tokens burnt — technically worth around $55 million. The Decentralized Autonomous Organization (DAO) is also looking to reduce its transaction tax as part of a broader DeFi revamp.
The tokens, however, are not necessarily part of the actual circulating supply of floki, so it's unclear if they should really be valued at this amount. When Floki expanded from Ethereum to BNB Chain it created a second set of 10 trillion tokens with the assertation that the circulating supply of floki would always stay under 10 trillion, according to the governance post. A lot of these tokens effectively ended up locked in the bridge but were not intended to be used unless other tokens were locked up in their place. As such, while the tokens are technically worth $55 million, since they're from the excess tokens outside the circulating supply then they shouldn't really have any value at all.
DAOs are decentralized communities that power crypto and blockchain projects.
Update: Added further detail from the governance post and changed headline to focus on token amount.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.