The team behind Floki Inu (CRYPTO: FLOK) — a memecoin known for its aggressive marketing campaigns and rapid rise in popularity — announced that the project will transition to become a decentralized autonomous organization (DAO).
What Happened: Floki Inu’s team announced that the project decided to “begin a gradual and phased transition to a DAO” following “extensive discussions with key and strategic advisors, as well as after review of data and information.”
The developers shared three main factors that played a role in the decision to transition to a DAO structure. The first one is ensuring mainstream adoption of the coin and its listing on mainstream centralized exchanges. Presumably, the reasoning is that — by becoming a DAO — the project would increase its decentralization and may be able to fall under the security classification.
The announcement reads: “This phased transition to a DAO makes FLOKI more decentralized and secure. It also eases the process of FLOKI being listed on key exchanges.”
The second factor cited is that the DAO structure is currently trending, as highlighted by Binance Coin (CRYPTO: BNB) adopting this model, major crypto exchange Kucoin announcing a focus on DAOs and Elon Musk’s brother Kimbal Musk launching his own DAO.
Many industry experts also expect this to be a major area of development for the crypto industry in 2022. The third — and last — reason cited is that Floki Inu’s team purportedly has always planned to adopt a DAO model.
Floki Inu’s developers will implement the change in a phased approach and will allow token holders to “have more of an input in key decisions” by voting on key governance decisions with FLOKI.