Bonk Dao Passes 84 Billion Token Burn Proposal – BONK Price Could Rally

Key Takeaways

• Bonk DAO burns 84 billion tokens.
• The proposal was passed with a 99.1% majority vote.
• BONK price up 10%, bullish prospects ahead.

Solana-based memecoin Bonk DAO passed a proposal  to burn 84 billion BONK tokens from its treasury. Announced on July 8 via the DAO’s official X (formerly Twitter) account, the platform aimed to reduce the circulating supply and enhance the long-term value of the crypto asset, marking a pivotal moment for the community.

In a major win for the memecoin’s community, the proposal was passed today, with a majority of 99.1% voting in favor. BONK’s price is up by around 10% over the weekend, with bullish prospects ahead. 

DAO Votes in Favor of Token Burn 

The 83,917,950,070 BONK represents 100% of the tokens earned through its Q2 revenue-sharing agreement with BONKBot. To boost community involvement in DAO decision-making, any wallet holding BONK could participate in the vote by depositing BONK for the six-day voting period. The voting weight was proportional to the deposited amount’s percentage of the total supply. All deposited BONK could be withdrawn at the end of the vote.

Voting successfully took place on the Bonk DAO platform. Over 1 billion people voted yes, compared to only 9.1 million for no. This was part of an effort to reduce the overall supply, which was previously made in April when 278 billion tokens were burned.

BONK Price Analysis 

On March 5, 2024, BONK reached an all-time high of $0.00003771, a nearly 400% surge from its February low. However, this peak was followed by a significant 75% decline, bringing the price down to $0.000012 by April 13.

On May 29, BONK ended its uptrend at $0.000044 in a three-wave pattern, followed by a downturn to a low of $0.000020 on June 24, a 55% decrease. The price then bounced from the 0.786 Fibonacci level, leading to a slight recovery. The daily chart RSI, which fell to 32% on June 23, has since increased with the rising price. Additionally, the MACD showed a positive cross on June 27, indicating the start of an uptrend.

The memecoin later made higher lows from its June 23 low but was restrained at $0.000027, forming an ascending flat triangle. This means that while buyers are increasing pressure, the sellers maintain the same levels. 

If we see a breakout above this horizontal level, we will receive a signal for the starting bull phase. However, a stronger confirmation should come if BONK finds higher support for the expected retracement. 

Should these two outcomes develop, it will mean that the first two sub-waves of the larger five-wave pattern have ended. In that case, its next advancement could lead to a new all-time high above $0.000050 in 2024.