Rumors are circulating that 10 trillion Shiba Inu (SHIB) tokens will be burned monthly this year as the automated phase of the burning mechanism begins this month. Shytoshi Kusama, a key figure in the Shiba Inu community, believes that network adoption is crucial for the price of SHIB to increase alongside the token burning.
Last year, CNF reported that Shibarium had plans to introduce a token burn mechanism to strategically reduce the supply of SHIB and boost its value. The initial phase involved manual token burning managed by an official deployer wallet to ensure careful monitoring and adjustment for the network’s health and sustainability. The second phase, which is the Automated Transition, is said to be an automatic system that will kick off this month. The Shiba Inu community is currently discussing the number of tokens that will be burned this year, with rumors suggesting that trillions of tokens could be removed from circulation. However, it’s important to note that no official figure has been confirmed by the Shiba Inu website.
The burning mechanism will require several upgrades to streamline the manual phase and the automatic transition. The success of the burn mechanism is closely tied to the adoption rate of the network. As the number of transactions on Shibarium increases, the token burning will grow exponentially. This means that the more the network is adopted, the more tokens will be burned.
The future of Shibarium’s token-burning mechanism looks promising. With 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.
Currently, Shiba Inu is trading at $0.00001 after experiencing a 2.7% surge in the last 24 hours. However, investors have suffered a 7% loss on their weekly investment. The market sentiment for the meme coin is bearish, with a market cap of $5,790,032,047.
Shiba Inu’s performance last year fell short of expectations following the launch of its layer-2 network. Analysts believe that the potential removal of 10 trillion tokens from circulation could trigger a price surge. However, Shytoshi Kusama, the lead developer, has clarified that token burning alone cannot influence price growth unless applications are developed for the network.
The introduction and evolution of the Shibarium Burn mechanism represent a significant milestone in the network’s development. By aligning token burns with network usage and continuously improving the process through upgrades, Shibarium is setting a new standard in blockchain token economics. Alongside its transition to the Sepolia Network and other technological advancements, Shibarium is poised to lead blockchain innovation and meet the increasing demands of the digital age.