Volt Inu Community Passes Vote for $75M Token Burn, Plans Polygon Network Expansion
A now-concluded Volt Inu community vote to burn nearly 45 trillion VOLT tokens on a BNB Chain to Ethereum bridge was passed Monday by voters, with $14 million worth already burned as of the time of writing on Tuesday.
These tokens were worth over $75 million when voting on the proposal ended. VOLT has a market capitalization of $107 million as of Tuesday.
The project also plans to expand to the Polygon network in a bid to acquire new users. Initially a memecoin themed after wolves, Volt Inu offers to users a decentralized exchange and a dragon-themed non-fungible token (NFT) collection.
Voltoshi's Message Ⅳ - A Decentralized Deflationary Adoption— Volt Inu ⚡️ (@VoltInuOfficial) February 13, 2023
⚡️44.85T #VOLT (worth $74.5M) will be burned over 5 days
⚡️Polygon listing within 2 weeks
⚡️Volted news and adoption incoming
📜👉 https://t.co/k6M8jGEcrf#VOLTINU $VOLT #VOLTARMY pic.twitter.com/PscSeegKtS
The VOLT token was launched on the Ethereum blockchain and allocated 100% of its supply to Uniswap liquidity. In January 2022, it was also launched on the BNB Chain, then known as the Binance Smart Chain (BSC), to gain more users as the blockchain was fairly popular among new crypto traders at the time.
Developers said burning tokens on the liquidity bridge is a security measure to protect against bridge attacks while improving token value for holders.
“In view of the events and hacks that cross-chain bridges have experienced in recent months (especially in 2022), we have nevertheless deemed it appropriate to try to reduce the impact of such attacks by reducing the liquidity (amount of tokens) locked in the bridge contract,” developers wrote in the proposal.
Bridges are blockchain-based tools that allow users to transfer tokens between different blockchains. However, these have been very susceptible to attacks: Last year alone saw over $2 billion lost or stolen from cross-chain bridges, as CoinDesk previously reported.
Developers said that while the liquidity locked in the bridge contract will be reduced by burning 44.85 trillion VOLT, some of the liquidity will the bridge will be important for arbitrage and meeting the liquidity demands of exchanges.
“The burn will have a short-term impact and also generate long-term deflationary impact by increasing reflections accumulated by burn addresses,” the proposal further explained.
A similar burn was earlier conducted by Floki DAO, a Shiba Inu-themed crypto project, earlier in February as CoinDesk reported. Floki burned over $100 million worth of its token and completely dissolved its BNB Chain to Ethereum bridge as part of a broader move towards positioning itself as a serious decentralized finance (DeFi) project.