BonkDAO plans to burn 1.6 trillion BONK tokens, worth approximately $53.5 million, as part of the community’s holiday campaign in an attempt to increase the scarcity of the memecoin. This move represents approximately 1.8% of BONK’s total supply.
BURNmas Campaign Started
BonkDAO’s holiday campaign called “BURNmas” is being held as a community-supported deflationary event that aims to burn one trillion BONK tokens by Christmas. The campaign aims to ensure price stability by reducing the token supply.
During BURNmas, BONK supporters can contribute to the token burn through activities such as tweeting with the hashtag #LetsBonk, following memecoin’s accounts on various social media platforms, and making predictions on BONKbets. These activities ensure the removal of tokens from circulation.
Previous Burning Activity and Effects
The BURNmas campaign stands out as a bigger step after BonkDAO’s token burn event in November last year. When nearly $4 million worth of BONK tokens were removed from circulation in November, memecoin’s market cap increased by nearly 75% in a week, from $2.3 billion to over $4 billion.
According to current market data, although BONK has experienced a decline of approximately 27% in the last 30 days, its market capitalization has increased by 6.1% in the last 24 hours, reaching almost $2.5 billion. In addition to being the largest memecoin on the Solana network, BONK ranks fourth among all blockchains, behind coins such as DOGE, SHIB and PEPE.
This burning is thought to be intended to preserve the value of BONK and increase community interest. Market activity may indicate positive effects of token burn.
“The BURNmas campaign aims to increase the value of BONK with the participation of the BonkDAO community.” -BonkDAO Official
Such deflationary strategies can have positive effects on market cap and price in the cryptocurrency market. High community participation can increase the success of the burn process. BONK’s future performance may depend on factors such as market conditions and community support. Token burning can support price stability by affecting the supply-demand balance.
Community-supported projects play an important role in the cryptocurrency ecosystem. This move by BonkDAO can also serve as an example for other memecoin projects. In the rapidly changing crypto market, strategies such as token burning are among the important factors that attract the attention of investors. This step by BONK may continue to affect market dynamics.
BONK is trying to gain an important place in the expanding memecoin ecosystem by maintaining its strong position on Solana. These strategies can be considered as part of efforts to increase the sustainability of memecoins.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
