According to U.Today, Bonk (BONK), a dog-themed token on the Solana blockchain, experienced a significant 43% surge. This increase is in response to a wider rally among meme coins and a proposal for a substantial treasury burn of 280 billion tokens. At the time of writing, BONK had risen 41.82% in the last 24 hours to $0.00002134, and 35.83% in the previous seven days. The 24-hour trading volume of BONK increased by 391%, with $431.53 million worth of trade.
The recent price surge of Bonk can be attributed to several factors, primarily the resurgence of meme coins in the broader cryptocurrency market. As meme coins gained renewed interest, investors shifted their focus to projects within the Solana ecosystem, seeking opportunities for outsized returns. However, Bonk's recent price jump might not be solely due to the meme coin rally; it might have also been fueled by a significant proposal to burn 280 billion BONK tokens.
BONK DAO, the decentralized arm of BONK, has received a proposal to burn 280 billion BONK from its Treasury. The proposal suggests burning 278,393,137,215 BONK from its Treasury, which represents 100% of the BONK generated by BONK DAO under its revenue-sharing arrangement with BONKBot since its launch in late 2023. BONKBot is Solana's Telegram trading bot, which debuted in November 2023. BONKBot levies a 1% fee on all transactions, of which 10% goes to the BONK DAO. By burning the BONK earned, BONK DAO would reduce the total supply of BONK while recognizing the community's desire to have a matching burn from the DAO, as done by BONKBot on an ongoing basis.
The proposal has been met with enthusiasm from the Bonk community, which views the burn as a positive step toward stabilizing the coin's market and fostering growth. As the proposal awaits approval, the anticipation has contributed to the buying frenzy, pushing Bonk's price higher.