Loading...

Shiba Inu team prepares for major SHIB token burn

TL;DR

  • The Shiba Inu ecosystem team plans a significant SHIB token burn using 40 Ethereum, valued at approximately $155,720.
  • This burn aims to reduce SHIB’s circulating supply, potentially influencing the token’s market dynamics.
  • The action is in line with previous Shibarium-powered burns, which have already removed 43 billion SHIB tokens from circulation.

The Shiba Inu ecosystem team has revealed plans for a significant token burn in the near future. This announcement came through a post by Shiba Inu’s marketing expert, Lucie, who disclosed that the team had amassed 40 Ethereum (ETH) for the purpose of burning SHIB tokens.

The value of these 40 ETH stands at approximately $155,720, given the current ETH price of $3,893. This move is anticipated to reduce the circulating supply of SHIB tokens, potentially impacting the token’s market dynamics.

Details on the planned burn

While specific details about the burn were not extensively shared, it is believed that this action aligns with the Shibarium-powered burns that have been occurring since December 2023. The Shibarium team has previously conducted five burns, eliminating a total of 43 billion SHIB tokens.

The most recent of these burns took place on January 9, removing 9.35 billion SHIBs from circulation. The Shibarium burns utilize a portion of the network’s gas fees for this purpose, with nearly 200 ETH already used in past burns. The community has been anticipating further burns, especially with the increase in transactions on the network.

Impact on Shiba Inu’s ecosystem

The upcoming burn, funded by 40 ETH, could see the removal of approximately 4.64 billion SHIB tokens from circulation. Although this number is a fraction of the total supply, which is in the trillions, such burns are crucial for creating deflationary pressure on the token.

This strategy could support Shiba Inu’s price by reducing supply amidst growing demand. The Shibarium protocol, which is still under testing, is expected to facilitate automatic burns under certain conditions, further integrating this deflationary mechanism into the ecosystem’s operations.

This planned burn represents a continuation of the Shiba Inu team’s efforts to actively manage the token’s supply. By utilizing the Shibarium platform’s capabilities, the team aims to enhance the token’s value proposition for holders. As the community awaits more details on the burn and the deployment of the Shibarium burn portal, these developments underscore the team’s commitment to supporting the token’s market performance through strategic supply reduction.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Bitcoin
Cryptopolitan
Subscribe to CryptoPolitan