The team behind the meme-inspired cryptocurrency $BABYDOGE has, in an ambitious bid to enhance the project’s security, proposed a token burn of up to 100 quadrillion BABYDOGE tokens that have been dormant on the Ethereum network since the project launched.
The proposal includes a drastic tax reduction for transactions of the meme-inspired cryptocurrency on Ethereum to zero, and is currently being voted on by the cryptocurrency’s community. The proposal came following a positive response from the community in a recent Twitter poll.
While the poll’s outcome demonstrated broad approval for the proposal, the team has underscored the necessity of a formal proposal to guarantee compliance with all requisite protocols.
The burn of 100 quadrillion tokens is intended to fortify the project’s security framework and deter potential misuse by bad actors. The tokens set to be burned hold a substantial current market value of approximately $209 million.
However, it’s important to clarify that the targeted tokens for this burn, though representing a substantial portion of the asset’s total supply, are not part of the circulating supply.
The team anticipates preserving some BABYDOGE tokens on the Ethereum network to facilitate investors’ continued bridging of assets between the Ethereum network and the Binance Smart Chain. Should the community approve the proposal and proceed with the 100 quadrillion token burn, an estimated 85 quadrillion BABYDOGE will remain on Ethereum for bridging purposes.
If the proposal is approved, the token’s transaction tax on Ethereum will drop to zero within 24 hours, but the token burn will only occur on June 1.
As CryptoGlobe reported, BABYDOGE was listed on major cryptocurrency exchange KuCoin earlier this year after seeing its price surge over 250%. KuCoin is a leading global cryptocurrency trading platform with a 24-hour trading volume of over $800 million, that supports over 700 digital assets across a growing number of trading pairs.
BABYDOGE, it’s worth noting, was launched on top of the Binance Smart Chain network, while SHIB and other memecoins were launched on top of Ethereum. As CryptoGlobe reported, the number of wallet addresses holding BabyDoge has at one point surpassed those holding onto Shiba Inu.
The meme-inspired cryptocurrency was developed as a hyper-deflationary token looking to become an “improved” version of Dogecoin, while championing its mission of rescuing dogs. Each BABYDOGE transaction is taxed at 10%, 5% of which are distributed to token holders and 5% of which are allocated to a liquidity pool.
The project has been burning an increasing number of tokens over time in a bid to reduce its circulating supply.