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Shiba Inu’s $1.2M SHIB token burn announcement

TL;DR

  • Shiba Inu to burn $1.2M SHIB, aiming for value boost.
  • Shibarium drives token burn surge.
  • Debate on BONE token burn’s impact.

Shiba Inu’s lead developer, Shytoshi Kusama, has revealed plans to burn approximately $1.2 million worth of SHIB tokens, in a move aimed at reducing circulation and potentially increasing the value of the popular meme coin. The announcement follows growing demands from the Shiba Inu community for more token burns to enhance scarcity and drive up SHIB’s value.

The upcoming SHIB token burn

Token burns are a common practice in the cryptocurrency world. They involve permanently removing a certain amount of a cryptocurrency’s tokens from circulation, thereby reducing the overall supply. The rationale behind token burns is to create scarcity, which can lead to increased demand and potentially drive up the token’s price.

Shytoshi Kusama, the lead developer of Shiba Inu, recently hinted at an impending token burn that will see approximately $1.2 million worth of SHIB tokens taken out of circulation permanently. This move comes in response to calls from the Shiba Inu community for more token burns to boost SHIB’s value.

They suggested using gas fees generated from previous Shibarium burns to facilitate burns of both BONE and SHIB tokens. However, Kusama disagreed with this proposal, clarifying that the accumulated gas fees are intended for burning SHIB tokens only.

Shibarium burns on the rise

Shibarium, Shiba Inu’s network, has witnessed an increase in token burns in recent weeks. Data from Shibburn reveals that Shibarium now accounts for 50% of its utilization for daily SHIB burns. These burns are typically conducted using BONE tokens as gas fees, and the accumulated gas fees have reached a substantial 1,367,845.42 BONE tokens, equivalent to around $1.2 million. These BONE tokens are slated to be converted into SHIB and subsequently sent to a dead wallet, adhering to the burn operations on Shibarium.

While there is no specific timeline provided for the SHIB burn, investors eagerly anticipate this event, which will result in the removal of over 100 billion SHIB tokens from circulation. The longer the burn is delayed, the higher the accumulation of BONE tokens for future SHIB burns on Shibarium.

The future of BONE tokens

Shibarium recently underwent its first hard fork, enabling support for multiple burn tokens, including BONE. Some community members have proposed using the accumulated BONE tokens for burning BONE itself. However, this idea raises concerns, as BONE already has a low circulating supply and serves as the primary gas fee token on Shibarium. Burning BONE tokens could potentially lead to an artificial price spike and higher gas fees on the network, making it an impractical move.

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 decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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