Floki DAO, the decentralized governance body of the memecoin protocol Floki has announced the slash in the on-chain taxation chargeable on transactions involving its maiden protocol TokenFi (TOKEN).
Floki DAO and the New Taxation Reality
When Floki introduced TokenFi on October 26, it revealed that upon listing on Uniswap and PancakeSwap, the initial taxation rate would be set at 20% for the first hour of launch. This move at the time was targeted at discouraging excessive selloffs of TOKEN from snipers who can destabilize the market valuation of the asset upon listing.
The outlined plan at the time was to reduce the taxation to 5% after the first hour and then leave the decision to slash or raise the limit to Floki DAO. With the latest announcement from Floki, the buy/sell transaction tax is now non-existent with the core goal of lowering the barriers to entry and drawing more users into the TokenFi ecosystem.
Designed to take the tokenization world by storm, Floki is positioning TokenFi to compete in this fast-growing niche that has the projection to hit a $16 trillion valuation by 2030.
The launch of TokenFi helped Floki pivot beyond being just a memecoin to a protocol with defined functionality and use cases. While the testnet is slated to go live before the end of this year, the launch has stirred interest in TOKEN with a bullish rub-off on FLOKI which soared more than 80% to temporarily return to the top 100 spot by market capitalization.
TokenFi Bags Prominent Listings
The emergence of TOKEN followed prominent exchange listings, riding on the popular demand from members of the crypto community. Beyond Uniswap and PancakeSwap, top centralized exchanges that have embraced TOKEN for listing include Binance, KuCoin, and Bybit amongst others.
Bitget was among the first exchanges that listed TOKEN upon launch, however, the trading platform backtracked on its plans, accusing the Floki team of manipulating the circulating supply of the asset.
However, Floki later came to address the issue and per an earlier report, the team revealed that Bitget listed an unauthorized version of TOKEN, disregarding an earlier warning it put out in order to protect investors.
With reduced taxation, new buyers may be attracted to what might reboot the price of both TOKEN and FLOKI, both of which are down by 12.73% and 1.15% to $0.03996 and $0.0000306 respectively.
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