- Floki DAO approves liquidity allocation for ETP, enhancing mainstream financial legitimacy.
- Floki’s ETP aims to attract investors without direct cryptocurrency ownership exposure.
- Regulatory recognition and new products position Floki for growth in 2025.
The Floki DAO has made a significant move in bridging the gap between cryptocurrencies and traditional finance. On December 27, 2024, the DAO approved a major proposal to allocate liquidity for the creation of a Floki Exchange-Traded Product (ETP).
This move is expected to enhance the legitimacy of Floki, marking its debut as a regulated financial product on the SIX Swiss Exchange in early 2025. If successful, this will position Floki alongside Dogecoin as the second memecoin to achieve such mainstream recognition.
FLOKI DAO VOTES IN FAVOR OF A PROPOSAL TO PROVIDE LIQUIDITY FOR THE CREATION OF A FLOKI ETP!
— FLOKI (@RealFlokiInu) December 27, 2024
The Floki DAO has voted overwhelmingly in favor of a proposal to allocate tokens towards providing liquidity for the creation of a Floki ETP.
The proposal, which was the first time ever… pic.twitter.com/e64vx3QOOl
Liquidity Allocation and Token Burn Strategy
To fund the Floki ETP, the DAO will utilize a portion of the 16.3 billion FLOKI tokens held in the community buyback wallet. These tokens will serve dual purposes: part will be allocated to provide liquidity for the ETP, while the remaining portion will be permanently burned. This strategic token burn will reduce the total supply of FLOKI, which could potentially increase its scarcity and value in the market.
The ETP itself is designed to offer both institutional and retail investors a regulated investment vehicle, allowing them to gain exposure to FLOKI without directly owning the cryptocurrency.
Floki’s Strategic Move into Traditional Finance
Floki’s ETP launch is not without challenges. Regulated products in the crypto space face significant scrutiny, especially for volatile assets like memecoins. However, Floki has addressed these concerns by partnering with a reputable asset manager and ETP issuer.
This collaboration aims to ensure the product’s stability and secure positioning in the financial market. Furthermore, the ETP will function similarly to exchange-traded funds (ETFs), providing a familiar platform for traditional investors to access cryptocurrency exposure.
Floki’s Expanding Ecosystem and Regulatory Milestones
Beyond the ETP, Floki has made notable strides in regulatory recognition. On November 21, 2024, the U.S. Commodity Futures Trading Commission (CFTC) recognized Floki as a utility token, positioning it alongside established cryptocurrencies like Ethereum.
This recognition, combined with Floki’s growing ecosystem, including the launch of its NFT-based metaverse game, Valhalla, has helped solidify Floki’s credibility in the regulatory landscape.
Valhalla partners with Sunderland AFC for the full 24/25 season ⚽️
— FLOKI (@RealFlokiInu) August 9, 2024
We are proud to announce that Valhalla, our flagship Play-to-Earn MMORPG, is partnering with Sunderland AFC for the full 24/25 season as a prominent back-of-shirt sponsor!
Key highlights of this partnership:
– 4… pic.twitter.com/bdbPLMkEif
Floki is also expanding its presence with new products. These include a crypto debit card that works across 31 European countries and the University of Floki, an educational initiative aimed at driving blockchain adoption. As Floki continues to innovate, it is well-positioned for further growth in 2025.