BonkDAO Burns 280B BONK as Community Approves Proposal

The decentralized autonomous organization (DAO) of the Solana-based dog-themed memecoin Bonk (BONK) has destroyed roughly 280 billion tokens worth over $6.7 million following the approval of a proposal initiating the burn by the community.

BonkDAO Burns 100% Treasury

According to a post by the official BonkDAO X handle, the community proposal passed on April 24 with 99.9% of voters in support of the offer.

Cointab reported earlier this week that BonkDAO received a proposal from its treasury on April 19 to destroy 100% of the revenue it had received from an agreement with BONKbot. The offer was part of the treasury’s efforts to reduce BONK’s circulating supply by regularly burning the tokens.

BONKbot, a Solana Telegram bot created to trade BONK for a 1% fee since November 2023, has a Bonk Buy and Burn feature that enables the repurchasing and destruction of the memecoin to increase its scarcity and value. A portion of BONKbot’s transaction fees goes to BonkDAO, per a revenue sharing agreement with the organization, while another portion is used to buy back BONK for burning.

As of April 23, BONKbot had burned 302.8 billion BONK worth roughly $6 million per the token’s price at the time. However, at the time of writing, the number of burned BONK had increased to 307 billion following BONKbot’s destruction of 1.2 billion BONK in the past 24 hours. With BONK changing hands at $0.000024 at the time of writing, the value of tokens destroyed by BONKbot now sits at roughly $7.3 million.

Implementing Quarterly BONK Burns

BonkDAO revealed that the voting process ended with 418.6 billion community votes in favor of the proposal to burn 100% of its treasury. Users can now withdraw their assets from the DAO voting and treasury management platform Realms. 

Notably, BonkDAo said it would integrate Realms and Armada, another voting infrastructure protocol, to allow for community governance and voting in the future with 5% of BONK supply available in the Bonk Rewards pool.

Reacting to the BonkDAO 280 billion BONK burn, the official X account of the Bonk Earn initiative expressed a desire to destroy similar portions of its token, BERN.

Meanwhile, BonkDAO is considering quarterly burns of BONK denominated by revenue earned by the treasury to ensure the token remains valuable.