In a recent announcement on its official Twitter account, meme cryptocurrency Baby Doge has proposed a drastic measure to bolster its security and ensure the integrity of the project: a burn of 100 quadrillion tokens, claiming it to be groundbreaking. The decentralized autonomous organization (DAO) governing the project submitted the initial proposal, which received strong backing from the community.
The token burn is scheduled for June 1st, after which roughly 85 quadrillion Baby Doge tokens will remain and become available for bridging to Ethereum. In addition, the initiative proposes a 0% fee reduction for transactions on the Ethereum network. The primary objective behind this massive burn is to address concerns about potential exploitation risks associated with the 100 quadrillion idle tokens, ever since Baby Doge’s launch on the Ethereum network.
An official statement outlines the team’s motivations for the burn, citing a desire to “reduce potential exploitation risks associated with them.” Furthermore, the initiative aims to allocate some tokens for bridging to Ethereum, while concurrently reducing transaction fees on the network to 0%.
However, despite the optimism of Baby Doge’s team, there is a potential downside to this proposal. In the event of any problems or disruptions with the Binance Smart Chain (BNB), only 85 out of the total 155 quadrillion Baby Doge tokens would be eligible for migration to the Ethereum network. This limitation could significantly affect the project’s flexibility and resilience.
It is worth noting that token burns are not an uncommon practice with memecoins. For example, Shiba Inu, another well-known memecoin, regularly burns millions of its tokens. The Baby Doge team is confident that implementing this sizable token burn will strengthen the project’s security, decrease fees, and improve its overall value proposition.
Currently, BabyDoge sits at rank 210 on Coinmarketcap, with a market cap of $300,789,653. While the author of the source article stresses the importance of conducting thorough market research before investing in cryptocurrencies, it remains to be seen how this massive token burn will impact the Baby Doge ecosystem and whether it will successfully enhance the project’s security and long-term stability.
Source: Coingape
