Recently, The Floki project has proposed two important decisions to be made by its decentralized autonomous organization.
The proposal centered around the future of its cross-chain bridge, the transaction tax on the FLOKI token, and burning nearly $55 million.
When the current team took over and relaunched the Floki project, the FLOKI token was initially launched on the Ethereum (ETH) blockchain with a total supply of 10 trillion tokens.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Crypto Fees Explained: How Not to Overpay? (Animated)
However, based on community sentiment and data, the team decided to expand the FLOKI token to Binance's chain, BNB. This decision has paid off massively, with the BNB chain currently having 5 times more holders than the ETH chain.
To expand FLOKI on the BNB Coin's (BNB) blockchain, the team launched another contract on the BNB chain with its own total supply of 10 trillion tokens.
According to the developers, in order to ensure that the FLOKI's total circulating supply never exceeds 10 trillion tokens, the team needed to implement a cross-chain bridge.
However, this bridge currently holds 55.7% of what should be FLOKI's total circulating supply, which poses a significant threat to the project in the event of an exploit, as reported.
Therefore, the team has proposed permanently disabling the main cross-chain bridge and burning around $55 million worth of tokens in the bridge.
Developers also highlighted the importance of the 3% transaction tax rate.
In the very early days of the project and at the peak of the bull market, this transaction tax generated millions in revenue that helped with operations and growth and ensured Floki’s survival.
However, with the bear market and the resulting drying of transaction volume, the tax has become redundant and is barely achieving its purpose, the team stated.
Additionally, the team has received feedback that the transaction tax is causing the project more harm than good and significantly limiting its growth and adoption. In light of this, the team has proposed reducing the transaction tax to 0.3%.
The Floki community will vote on these proposals in the coming weeks. However, at the time of writing, there are 400 votes and 99% of them are in favor of burning the FLOKI tokens.