$BONK Jumps 4% Following 84 Billion Token Burn

The price of Bonk ($BONK), a Solana-based memecoin, has experienced a 4% surge after BONK DAO completed the destruction of 84 billion $BONK tokens ($2.08 million) from circulation.

On Sunday, BONK DAO announced it has passed and executed a proposal to burn approximately 84B $BONK tokens from its treasury. This represents 100% of the BONK earned by the DAO from its revenue-sharing agreement with BONKBot in this year’s second quarter (Q2). 

This proposal has passed and been executed. You can now go to https://t.co/Z7q2JzWTOu and withdraw your BONK. https://t.co/0mVdsmJK3r

— BONK DAO (@bonk_dao) July 14, 2024

Community Supports Token Burn 

The proposal ended with 1.028 trillion community votes in favor of the proposal. This represents 99% of the total votes. On the other hand, 9.116 billion community votes, representing 0.9%, went against approving the proposal. This development underscores $BONK community commitment to memecoin’s future growth and effort by BONK DAO to manage the supply of the memecoin and boost its long term value.

Many industry projects employ token burn as a strategic move to manage inflation and improve a token’s economics. By destroying a substantial amount of $BONK, the DAO aims to reduce the supply of $BONK in circulation, increase its scarcity, and boost its price in the long term. $BONK currently has a maximum supply of 92.91 trillion and a circulating supply of 67.72 trillion.

$BONK Soars

Following the latest burn, the price of $BONK saw a 4% surge to exchange hands at $0.00002476. This surge helped propel the memecoin’s market cap to $1.7 billion with a daily trading volume of $308 million. 

Meanwhile, this is not the first time BONK DAO will execute a token burn for $BONK. In late April, it also announced the destruction of approximately 278 $BONK tokens from circulation. This proposal ended with 418,625,159,192 community votes in favor, which represented a 99.9% support of the proposal.