OpenTensor Foundation Proposes 10% TAO Burn Following $8 Million Exploit

IconCryptoNewsTerminal Staff03 Jul, 2024

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OpenTensor Foundation Proposes 10% TAO Burn Following $8 Million Exploit

The OpenTensor Foundation (OTF) has proposed burning 10% of the TAO supply to stabilize the token's price after a recent $8 million exploit. The incident, which saw a Bittensor user lose 32,000 TAO due to a private key leak, caused TAO to drop to its lowest point in six months. The OTF proposal aims to reduce the circulating supply of TAO, thereby increasing its scarcity and potentially boosting its price. The burn would also serve as a signal to the market that the OTF is committed to supporting the value of TAO. The proposal has received mixed reactions from the Bittensor community. Some users support the burn, arguing that it is necessary to protect the value of their tokens. Others are concerned that the burn will further reduce the liquidity of TAO and make it more difficult to trade. The OTF is expected to vote on the proposal in the coming weeks. If approved, the burn would be the largest single reduction in the TAO supply to date.

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