FLOKI Token Soars 343% in a Week: Here's the Reasons!

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Bittime -  The price ofFLOKItoken ,cryptocurrencyinspired byShiba Inu, is skyrocketing. In the last 7 days alone, the price has jumped by 343% according to reports. This significant price increase was triggered by FlokiDAO'sto burn 190 billion FLOKI tokens, which was passed through community voting.

Floki DAO Proposes Massive Token Burn

Floki DAO developers recently proposed a large token burn. The burn aims to remove 190 billion FLOKI tokens, worth approximately $11 million, from circulation. This step is expected to improve network security and strengthen investor confidence in the FLOKI token.

The tokens to be burned come from the supply stored on the Multichain bridge. It is worth noting that Multichain experienced an exploit incident in July 2023 that caused losses of over $130 million.

The soaring price of FLOKI may also be influenced by the euphoric trend of investing in meme coins. Other meme tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and BONK have also experienced significant price increases, some of which even exceeded 50% in the past week.

Floki Community Approves Token Burn

According to the proposal submitted by Floki DAO, they plan to carry out another massive token burn, similar to the one carried out in January 2023. This time, the proposal aims to burn 190,918,585,431.84 FLOKI tokens, which is equivalent to about 2% of current total circulation, with a value of approximately $11 million.

The aim of this token burn is to increase the security and long-term stability of the Floki network by permanently removing these tokens from circulation. These tokens are currently held in a multisig wallet, following a Multichain bridge exploit incident that nearly cost Floki $130 million. Burning 190 billion FLOKI tokens is considered the safest way to ensure these tokens cannot return to circulation.

Community voting for this proposal was held on February 29, 2024 to March 2, 2024. The results showed that 84% of voters agreed with the token burn.

The development team explains the process, "If Floki DAO approves this token burn, then the token will be burned within one week after the DAO vote is passed. If Floki DAO rejects this token burn, then the token will be stored in Floki's treasury for future use. "

Token burning means permanently removing tokens from circulation by sending them to a crypto wallet that is inactive or cannot be accessed by anyone. Floki previously burned tokens in January 2023.

Also Read How to Buy Crypto:

Reasons for Token Burning

Token burning is done for several reasons, and it is generally a strategy adopted by crypto projects to manage their token supply. Here are some of the main reasons why token burning is done.

1. Reducing Total Supply

One of the main goals of token burning is to reduce the total supply of tokens circulating in the market. By reducing supply, projects can create aspects of limitations that can increase the value of the token by reducing supply while demand remains stable or increases.

2. Increase Token Value

By reducing the total supply, the remaining tokens can become rarer and have a higher value. This can increase the value of the token for the holder, as rarer tokens tend to command a higher price in the market.

3. Inflation Regulation

Some projects use token burning as a way to control inflation or increase in token supply. By burning a portion of the token supply generated through mining or staking, projects can control the rate of inflation and maintain a balance between supply and demand.

4. Provide incentives for token holders

Token burning can also be used as a way to provide incentives to token holders. By burning a portion of the token supply, projects can increase the value of remaining tokens, provide returns to token holders who have staked, or provide rewards to those active in the project ecosystem.

5. Improve Compliance and Regulation

In some cases, token burning can help projects comply with certain regulations or policies related to managing token supply. By reducing token supply, projects can demonstrate their commitment to healthy supply management and meet any requirements that may be imposed by regulatory authorities.

How to Buy Floki (FLOKI) on Bittime

You can buy and sell Floki (FLOKI) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Floki (FLOKI) is available on Bittime with the market pair FLOKI/USDT . To be able to buy FLOKI USDT on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Floki (FLOKI) on Bittime . 

Monitor the price chart movements of Floki (FLOKI) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

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DOGE, SHIB, PEPE, FLOKI, and BONK Achieve $50 Million Liquidation in 24 Hours!

DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.