Bonk DAO burns 1.69T tokens, bringing the supply down to 91T

Bonk DAO voted in favor of another decrease in the token’s supply. The community gathered 1.69T tokens, which were burnt from the DAO’s multi-sig wallet. 

Bonk (BONK), one of the leading Solana meme tokens, decreased its supply by 1.69B tokens after a community vote. The token burn by Bonk DAO aims to further decrease the supply and spark value growth for BONK. 

The token burn further limits the supply down to 91T from an initial creation of 100T tokens. The burn was achieved in a single Solana transaction and recorded for the community.

BONK aims to be a community-owned token, where users agree to hold and keep the asset deflationary for long-term appreciation. The current burn mixed various forms of social media and ecosystem engagement, adding more exposure for BONK on social media.

The BONK burned is valued at over $52M in notional value, and represents around 2% of the total supply. After the burn, the wallet of Bonk DAO still holds 9% of the total supply and is the biggest singular entity on the chain. The DAO wallet even surpasses the BONK holdings on Binance. The BONK staking pool locks up an additional 4.8% of the token’s supply. 

Bonk DAO still holds 9% of the total token supply. | Source: Bubblemaps

The recent token burn was a continuation of the 2023 Bonkmas event. The supply burn also marks the second anniversary of BONK. The vote aims to boost participation across the ecosystem, as the project’s main goal is to boost Solana usage through memes. The initial intention was to burn 1T tokens, but the community extended the deposits to a much larger pool.

Two years ago, BONK was focusing on airdrops and reaching a wider community of holders. Later, BONK aims to engage those holders and strengthen its position as a long-term meme. BONK was one of the memes to help Solana leave behind the meme market. However, BONK is also not favored by influencers like Murad Mahmudov, who are more interested in cults created in the past year.

BONK will plan similar events in the future, while trying to offer better real-time reporting to motivate the community, remarked top ecosystem contributor Nom . The burn proposal was accepted with 99% votes in favor.

The burn campaign lasted from November 15 until December 25. Part of the burn was based on social media interactions, including messages on X and followers on Instagram and TikTok. Additional BONK was set aside for burns for engaging with selected ecosystem partners.

BONK still awaits to recover its higher price range

Even after the burn, BONK did not rally immediately. The asset traded near a one-month low at $0.000031, after peaking at $0.000053 on November 22. BONK open interest is near a three-month low at $8.32M, after traders rolled over to other assets. However, the lowered position sparks expectations of an eventual rally from the lows as BONK starts to appear undervalued.

BONK remains one of the low-cost tokens aiming for meme influence and community cohesion while attempting to grow its influence against other memes. 

The recent token burn also aims to boost attention for BONK, after other Solana assets started to displace the former leader. BONK has previously lost its leading position to DogWifHat (WIF), though for a brief period of active trading. 

This time around, BONK is no longer the leading Solana meme token, after the native Pudgy Penguins token (PENGU) was added to the list. PENGU was categorized as a meme token, and its market capitalization above $2.4B put it ahead of BONK. 

The original meme still has a chance to recover its leading position, attempting to ride on its wide community appeal and long trading history. BONK is part of the 2022 crop of memes, with more than 370K followers. Its prominent status and listings on major markets put it ahead of newer meme trends. BONK has already spread to 11 chains, with more than 770K reported holders.

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