- 10 trillion Shiba Inu (SHIB) is rumored to be burned monthly this year as the automatic transition phase of the burning mechanism starts this month.
- According to Shytoshi Kusama, the token burning would have to be accompanied by network adoption to see price growth.
CNF reported last year that Shibarium would be introducing a transformative token burn mechanism this year to strategically reduce the supply of Shiba Inu, increasing the value for the benefit of the ecosystem. The initial phase of the token burn mechanism was the manual stage where the process was managed by an official deployer wallet.
This was to ensure close monitoring and adjustment as well as alignment to the network’s health and sustainability. The second phase which is the Automated Transition was reported to see the mechanism evolving into an automatic system. In that report, it was disclosed that the process would start this month. Currently, the Shib community is discussing on various forums the number of tokens that will be burnt this year.
Some rumors establish that trillions of tokens could be burnt this year. The rumor stems from the previous post from Lucie, a Shiba Inu (SHIB) influencer and team member, stating that 111 trillion tokens would be burnt yearly. If this is anything to go by, almost 10 trillion Shib tokens would be removed from circulation every month. It is important to note that no official figure has been disclosed by the Shiba Inu website.
With the burning mechanism, the network would go through several upgrades to ensure that the manual phase and the automatic transition are streamlined. The sources of the burn mechanism have been linked to the adoption rate of the network.
More on the Shiba Inu Token Burning
As the number of transactions on Shibarium increases with a huge surge in gas fees, the token burning would also grow exponentially. This implies that the more the network is adopted, the more the tokens would be burnt.
The future of Shibarium’s token-burning mechanism looks promising. With the planned upgrades and the direct correlation between network usage and burning efficiency, the mechanism is expected to become a central component of Shibarium’s economic strategy. As adoption increases, so does the efficacy of the burn process, making Shibarium an attractive platform for users and investors alike.
As of press time, Shiba Inu was trading at $0.00001 after surging by 2.7% in the last 24 hours. However, investors incurred a loss of 7% on their weekly investment. Currently, the meme coin has a bearish market sentiment with a market cap of $5,790,032,047.
Shiba Inu’s performance last year was not as expected as the asset failed to live up to the hype surrounding the launch of its layer-2 network. Analysts believe that the possible removal of 10 trillion tokens from circulation could cause a price surge. Its lead developer Shytoshi Kusama has clarified that the token burning alone cannot influence price growth unless applications find their way on the network.
The introduction and evolution of the Shibarium Burn mechanism mark a significant step in the network’s development. By aligning token burns with network usage and continuously enhancing the process through upgrades, Shibarium is setting a precedent in blockchain token economics. This strategy, coupled with the transition to the Sepolia Network and other technological advancements, positions Shibarium at the forefront of blockchain innovation, ready to meet the growing demands of the digital age.
