On February 11, 2022, the Floki DAO voted that blacklisted wallets that benefited from the V1 inflation bug should return excess tokens they got to the Floki multisig wallet.

The following spreadsheet gives a breakdown of the situation of things since that vote including how much in excess tokens has been returned and how much is due to be returned as of June 30th, 2022:

https://docs.google.com/spreadsheets/d/1GNhyT1HD2XYuQxQ8lg34p1g9Fvlb_8WY/edit

This is a proposal to determine what happens to the excess tokens that are returned to the Floki multisig wallet.

There are two options:

The excess tokens will be allocated to Valhalla & the Floki Ecosystem to help Floki grow much faster. The excess tokens will be burnt.

Option #1: Valhalla & The Floki Ecosystem

Here’s a breakdown of what happens if the DAO votes for these tokens to be allocated to Valhalla & the Floki Ecosystem:

Valhalla

While we’ve seen the impressive and innovative game the Valhalla team is building, the fact remains that the game economics can make or break the game.

Launching with a robust treasury will give Valhalla massive advantage over a lot of other blockchain games in the market and make the game a lot more attractive to players which is good for Floki in the long term.

The Floki Ecosystem

Unlike many successful cryptocurrencies whose launch and tokenomics were properly planned, Floki wasn’t initially created by the current team; instead, it was a fair launch community project that the team took over.

Due to this fact, the tokenomics did not allow for a robust treasury that makes it possible to grow the ecosystem as aggressively as is possible.

For example, there are limitations when it comes to introducing staking options, collaborating with other projects, and achieving institutional partnerships.

Staking: There has been a clamor for staking for Floki in the community, and understandably so. While we do have plans for staking, a weak treasury limits our options. If this vote passes we will be in a better position to introduce better staking options to Vikings who want this feature.

Expansion to other DEXs: Major DEXs occasionally reach out with proposals to list Floki and provide some form of DeFi to users (farming, staking, etc).

Sometimes, these DEXs offer significant amounts of their own native tokens that we can pair with Floki to create a robust LP on their DEX. Relationships like this create more avenues for people to trade Floki but can only be possible with a robust treasury.

A weak treasury limits our options with these DEXs (as well as our growth potential). A more robust treasury puts us in a better position to engage with more of these platforms and ensure Floki is tradeable in as many strategic places as possible.

Strategic collaboration with institutional partners: Projects with institutional backing/adoption tend to have better growth potential. For one, it’s a lot easier for these projects to get listed in places that make them a lot more accessible to both retail and institutions traders (CEXs, trading outlets, etc). Secondly, they tend to fare better during tough market conditions that tend to affect retail traders more due to having strong institutional exposure.

Strategic collaborations with institutional partners also puts Floki in a much stronger position operationally during the bear market by making it easy to get funds especially since nobody really knows how long the bear market will last in view of the macro factors. An advantage that can be critical to the survival of the project at a time where market factors have significantly impacted the project’s volume and by consequence revenue through on-chain transaction tax.

For example, macro factors have led to on-chain Floki volume going down significantly on DEXs which has impacted revenue. A strong treasury makes it easy to make deals with institutional investors to get funds while also strategically tapping into their networks to help grow the project since they are invested.

CEX Listings: While we have several exciting CEX listings planned, getting listed on some of the world’s biggest exchanges requires a lot of tokens. It isn’t unusual to see projects allocate as much as 10% of their supply towards CEX listings in general.

A more robust treasury puts us in a much better position in our engagement with CEXs especially when collaborating on listing and marketing/promotional activities, which sometimes can make or break these listings.

Option #2: Burn

This is quite simple and needs no explanation. All of the excess tokens will be sent to a burn wallet. With this option we would lose out on all the above benefits and might suffer operationally, but we would satisfy the burnbois and burngals.

Conclusion

Regardless of what option you choose, Floki is a DAO and the decision of the DAO will be binding.