Over $55 million worth of floki (FLOKI) tokens are locked on the blockchain’s staking platform.
Floki was released in 2021 as a meme coin named after Elon Musk’s pet Shiba Inu, but has morphed over time and is positioning itself as a serious decentralized finance (DeFi) project. Decentralized finance is an umbrella term for lending and borrowing via the blockchain without the use of intermediaries.
The 1.8 trillion FLOKI represents almost 18% of the circulating supply, and most of the tokens are expected to be out of circulation in the coming years as traders continue to bet money to earn rewards of until 120%.
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The staked floki is used to reward holders with token (TOKEN), a sister project that allows users to tokenize real-world assets (RWA) that was released in the last week of October.
RWA refers to a physical asset, such as real estate or a car, digitized and made available on DeFi applications. Several analysts see RWA as a ‘trillion dollar opportunity’ because such products could theoretically allow anyone in the world to trade or invest in any global asset – which is currently a complex process governed by strict business and financial laws.
Returns range from 51% to over 165% depending on when these tokens are locked.
Floki developers previously told CoinDesk that they expect tokenization to become a $16 trillion market by 2030. Users can acquire TOKEN via decentralized exchanges – where it has reached a market capitalization of $40 million – but more than 50% of the supply can only be obtained through staking. FLOKI.
Incentives will be offered to users who use the protocol to launch their tokens or smart contracts. A percentage of TokenFi tokens will be set aside to reward protocol usage based on daily activity – which could create a flywheel effect that attracts users who continue to use the platform for even more rewards.