Market Times:

London:

New York:

Singapore:


News

Memecoin BONK Unlocks New Level, Over 300B Tokens Burned

Bonk DAO recently received a proposal from its treasury to burn 280 billion BONK from its revenue sharing agreement with BONKbot.

Avatar image of Cynthia Ezirim Cynthia Ezirim•April 23, 2024
fire

Solana-based dog-themed memecoin Bonk (BONK) has burned a substantial portion of its circulating supply to increase its scarcity and value.

A post from the BONKbot X account revealed that the memecoin had burned more than 300 billion tokens worth approximately $6 million at current prices. Data from CoinMarketCap shows BONK was trading around $0.000020 at the time of writing.

BONK Burns Over 300B Tokens

In the past 24 hours alone, BONKbot has burned 2.6 billion BONK worth $44,793, bringing the total tokens destroyed to exactly 302.8 billion. The tokens come from BONKbot transaction fees set aside for instantly burning BONK. Due to the burning of BONK over time, the circulating supply of the memecoin has shrunk to 65.19 trillion tokens.

BONKbot is a Solana Telegram bot created to trade BONK. Since its launch in November 2023, the tool has transacted more than $5 billion in volume, serving thousands of users for a fee of 1% on all transactions.

The bot has a Bonk Buy and Burn feature that allows for the purchasing and burning of a substantial portion of BONK. While 80% of the trading fees inject liquidity back into the BONK ecosystem, 10% is burned, and the remaining 10% goes to the Bonk decentralized autonomous organization (DAO), per the revenue sharing arrangement made between both entities last year.

Bonk DAO to Burn 100% of Treasury

Bonk DAO recently received a proposal from its treasury to burn 280 billion BONK from its revenue sharing agreement with BONKbot. The offer received positive sentiment from the BONK community, which considers the move a positive step in stabilizing the memecoin’s market and growth.

The offer to burn 100% of Bonk DAO’s treasury also represents the organization’s attempt to burn BONK regularly, like the BONKbot, to reduce its circulating supply. The DAO said it would consider putting mechanisms in place to ensure quarterly burns of BONK denominated by revenue earned by the treasury.

Following the proposal’s unveiling, BONK experienced a substantial rally due to a buying frenzy from market participants who expect higher prices soon. At the time of writing, the token was up 6% in the past 24 hours and 51% in the last seven days.

Meanwhile, global neobank and fintech company Revolut has added BONK to its crypto offerings, giving millions of users access to the memecoin.

Cynthia Ezirim

Cynthia Ezirim is a news reporter at Cointab who is passionate about Bitcoin, non-fungible tokens, and decentralized technology. She joined the crypto space in late 2022.