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The crypto-meme Floki burns 3 million dollars in tokens after the DAO vote

Nella giornata di ieri, il team della crypto-meme Floki ha inviato ben 15,2 miliardi di token FLOKI ad un “indirizzo di burn,” bruciando un controvalore di 3,4 milioni di dollari, a seguito da quanto stabilito da una recente proposta di governance avanzata dalla DAO del progetto.

This move brings the share of burned tokens to 58.69% of the total supply of FLOKI, pushing the bull price action of the asset and increasing its deflationary component.

Will the memecoin follow in the footsteps of PEPE and mark new all-time highs?

Let’s see everything in detail below.

The vote of the Floki DAO passes: burn crypto for 3 million dollars, the memecoin becomes deflationary

On May 15, the Floki DAO, the decentralized autonomous organization involved in the governance of the project, approved the proposal to burn 15,246,000,000 FLOKI tokens, for a crypto equivalent of approximately 3.4 million dollars.

Yesterday, a week after the end of the referendum, the team of the memecoin moved to transfer the selected resources to the appropriate “burn address” used to burn those tokens destined to exit the total supply quota, set at 10 trillion FLOKI.

Overall, 99.84% of the DAO voters were in favor of the proposal, which obviously would have increased the value of the cryptocurrency by removing potential supply from the market.

Questo traguardo riflette un profondo sostegno da parte della comunità di Floki.

It is worth noting that initially, the decision to burn these tokens came from the move of a user included in the lista nera.

Now, after the Floki DAO has accepted its proposal, it was decided to give this user 1% of the burned tokens as an incentive.

Below is a screenshot of the block explorer Etherscan, where you can clearly see the transaction advanced by the Multisignature wallet of Floki, initialized by the Flokitars: Deployer and addressed to the burn address.

crypto floki burning dao
Source: https://etherscan.io/tx/0x68d4b81cc194f97d84aefdd3d7bfd67d12028db9ed45cac3c3f859edf90daaf7

It is not the first time that the Floki DAO has decided to burn portions of its own crypto: the latest move represents a cut of 1.5% of the total supply of the FLOKI token but since its inception, 58.69% of the total resources have been eliminated (5.8 trillion FLOKI), which is over 1 billion dollars according to current valuations.

In the last 6 months, tokens worth over 22 million dollars have been burned, making the crypto more deflationary than other competing memecoins such as DOGE, PEPE, SHIB, WIF, and BONK.

In any case, the deflationary component does not represent an automated process in Floki, unlike Ethereum which after the EIP-1559 constantly burns part of the gas fees collected, but it turns out to be rather a policy advanced by the community to make the token increasingly rare and scarce as an on-chain resource.

Analysis of the prices of the token FLOKI

From May 13 onwards, the day on which the proposal of the Floki DAO to burn part of its supply was made, the memecoin FLOKI has recorded a price growth of 35% such as to bring the chart structure back to a bull condition.

In particular, the coin, after marking a retracement of -60% in the middle of the months of March and April, has returned to the assault, reclaiming the 50-period exponential moving average on the daily time frame, highlighting the formation of a strong bottom construct.

Now the quotations are grappling with the approach to the resistance of 0.00025 dollars, which separates FLOKI from the possible run to break the highs.

Given the continuous pressure from the project’s community to validate its own token, and given the overall outlook of the crypto market, it is likely that FLOKI will definitively break its highs in the coming weeks, following the trajectory of its companion PEPE.

Daily chart of the price of Floki Inu (FLOKI/USDT), Binance market

The bullish trend of the memecoin sector has been marked even more after Bloomberg analysts changed their forecasts regarding the possible approval of the Ethereum spot ETF, with the chances of success jumping from 25% to 75%.

The final decision of the SEC, which will have to express itself initially today for VanEck’s request, will definitively establish the trend of the crypto market in the short term.

In particular, in case of approval, we can expect a continuation of the bull trend of the entire market, with FLOKI and many other altcoins that will obviously benefit from it.

In the case of a rejection, we can instead prepare for a marked dump, which could potentially send FLOKI back below $0.00020.

At the time of writing, according to CoinGecko data, FLOKI ranks at number 6 among the top memecoins in the crypto market, with a capitalization of approximately 2.2 billion dollars.

Alessandro Adami
Alessandro Adami
Graduated in "Information, Media and Advertising", for over 4 years interested in the cryptocurrency and blockchain space. Co-Founder of Tokenparty, community active in spreading crypto-enthusiasm. Co-founder of Legal Hackers Civitanova marche. Information technology consultant. Ethereum Fan Boy and supporter of Chainlink oracles, strongly believes that smart contracts will be central in the development of society.