Floki developers plan to burn $11m tokens, reducing supply by 190B Floki

Floki (FLOKI) developers will float a proposal to burn 2% of the token’s circulating supply to increase scarcity and bump network security for the dog-themed crypto platform.

“We’re proposing a burn of 190,918,585,431.84 $FLOKI tokens,” lead developer B told CoinDesk in a Telegram message. “That’s around 2% of the token’s current circulating supply, which is currently worth over $11 million.”

Burns refers to permanently removing tokens from circulating supply by sending them to a crypto wallet that no one controls. Floki previously conducted a burn event in January 2023, which preceded a 70% price spike in the days afterward at the time.

Developer B said that the tokens for the proposed burn will originate from the supply stored on the Multichain bridge. Multichain was a platform that let users transfer tokens between various networks – but imploded in July 2023 after an exploit saw over $130 million in funds stolen from the platform.

Floki said it had removed tokens prior to Multichain’s implosion and has since held those in a secure wallet.

“We noticed a few red flags with Multichain last year and immediately proceeded to withdraw the bridge tokens we had with them into the Floki multisig,” B shared. “We believe that the only trustless way to guarantee that they NEVER enter into circulation is to burn them.”

Floki climbed as much as 13% after the news and was recently trading 10% higher, CoinDesk data show. The CD20, a gauge of the broader crypto market, was little changed over the same period.