• 30 May, 2024
News

BONK Token Rallies Amid Proposal to Burn Treasury Holdings

Bonk (BONK), a meme-themed token on the Solana blockchain, experienced a significant surge in value, climbing by 25% over the past week. This rally comes as BONK DAO, the decentralized organization behind the token, considers a proposal to burn a large portion of its treasury—280 billion tokens to be exact.

A key factor in BONK’s recent rally is the proposal to reduce its total supply. The proposal recommends burning 280 billion BONK from its Treasury, and 278,393,137,215 BONK, representing 100% of the revenue generated by BONKBot, a Telegram-based trading bot on Solana, since it was introduced in late 2023. This revenue-sharing system collects a 1% fee on all transactions, with 10% of those proceeds allocated to BONK DAO.

The proposal has ignited excitement within the Bonk community, with many seeing it as a significant step toward stabilizing the token’s value. Burning a large portion of the supply can increase scarcity, leading to higher demand and potentially driving the price upwards. Although the proposal is still pending approval, the anticipation has fueled a buying spree, resulting in the notable price rally seen in the past week.

Despite the recent rally, BONK experienced a slight decline in the last 24 hours, dropping by 6.79%. However, its trading volume remains high at $265,026,351.22, indicating continued interest in the token. Bonk’s market cap currently stands at $1,359,146,510, with a circulating supply of 66 trillion BONK.

Bonk’s performance over the last seven days has outpaced the broader cryptocurrency market, which is up by about 5.00%. It has also outperformed similar tokens within the Polygon ecosystem, which saw no significant change during the same period.

As the proposal to burn the treasury awaits approval, BONK’s future remains uncertain. If approved, the significant reduction in supply could lead to continued price growth, though much will depend on the broader market sentiment and demand for meme coins. The BONK community will be closely watching developments as the proposal moves through the approval process.

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