Lucie, the marketing lead for the Shiba Inu ecosystem, has addressed concerns about the token’s large supply, which a user had described as a “major disadvantage” for the SHIB community. She revealed plans to reduce it soon, generating optimism within the community that could potentially fuel a price leap for Shiba Inu’s native token, SHIB.
“Epic” Shiba Inu Burn Strategy
In a recent X post, Lucie clarified that the Shiba Inu developers could not modify the token supply because Ryoshi, the project’s anonymous creator, burned the keys, leaving no one in control. She emphasized that the only way to reduce the supply is for users to purchase and burn Shiba Inu tokens actively.
This hardly comes as a surprise, considering that the meme coin has consistently relied heavily on the goodwill efforts of its community to burn the excessive SHIB in circulation. Their actions are crucial to the value of the remaining SHIB coins today.
Lucie then revealed Shiba Inu’s ambitious plan to solve the problem. According to the marketing lead, the plan is to build an epic system that attracts a large user base and utilizes SHIBARIUM daily, which she says will require millions (even billions) of users. “The more users we have, the more SHIB can be burned, increasing its value over time,” Lucie stated.
As more people use Shibarium, the Layer-2 blockchain network on Ethereum, it will attract a growing number of daily users and create more opportunities to burn SHIB, potentially boosting the token’s value over time. In line with this goal, an automated burn mechanism was introduced last month to enhance Shiba Inu’s burn rate further.
The Shiba Inu burn portal, ShibTorch, which recently launched on Shibarium, is explicitly designed to burn only the base fees paid by users. These base fees are sent directly to the burn contract, while a second priority fee is allocated to validators.
SHIB’s Burn Rate Decrease
The new SHIB burn strategy requires a significant financial commitment and widespread participation to succeed. Lucie, the marketing lead, emphasized that the key to its success lies in expanding the community, saying it’s “all about growing the community and letting the system do its magic!”
Recent data from the SHIB burn shows a significant 95.33% drop in the burn rate over the past 24 hours. During this period, 648,525 SHIB tokens were removed from circulation. This highlights the community’s minor efforts to reduce SHIB’s overall supply and produce tangible results.
Despite the community’s aggressive SHIB token burning, the cryptocurrency hasn’t seen the expected price uptick. At the time of this writing, SHIB’s price is trading at $0.00001378, indicating a 0.65% decline in the past 24 hours. However, some market watchers are of the opinion that as SHIB’s adoption broadens, its price may follow suit.
Featured image created with Dall.E, chart from Tradingview.com
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