The ever-vibrant Shiba Inu community, also regarded as SHIBArmy, has expressed strong opposition to a recent proposal that aims to allocate 35.7 Ethereum to burn SHIB tokens, thereby reducing the overall supply of the digital asset to trigger a price growth for the meme coin potentially.
As SHIB continues to traverse the turbulent cryptocurrency market, the opposition draws attention to the growing worries among holders on how best to maintain and increase the value of the popular dog-themed meme coin.
Is A Huge Shiba Inu Burn On The Horizon?
Last week, Shytoshi Kusama, the project’s lead developer, introduced a proposal to the Shiba Inu community about the allocation of about 37.5 ETH produced by its partners to support the SHIB DAO, urging them to vote on which area the funds should be used in the ecosystem.
Specifically, four possible use cases for the fund were listed in the proposal: allocation to community projects, putting them in a new multi-signature wallet for community-driven decisions, tackling funding, and burning SHIB tokens.
However, the community appears to be against using the funds to burn SHIB, arguing that it would be preferable to use the large amount of ETH to develop other areas of the Shiba Inu ecosystem.
According to a SHIB enthusiast, Jolt, while the 37.5 ETH can seem like a massive burn, it cannot impact SHIB price behavior. This is due to the significant overall supply of the project, which boasts over 500 trillion SHIB.
As a result, Jolt believes it would be wiser to use this fund elsewhere, where it will have a greater influence and wider distribution, thereby boosting the project. In addition, the enthusiast advises the team to focus more on using Shibarium, the project’s layer 2 blockchain to make the burns as intended if they wish to burn SHIB.
He further noted that more exposure for Shibarium and BONE is required through Tier 1 exchanges, Shibarium integration and assistance from wallets and exchanges, and traditional advertising, which he believes will require fees and funds to carry out the operation. ” The 37.5 ETH could be used towards the chain’s growth that would benefit the entire community,” he added.
SHIB Burn Rates Experiences Notable Decline
As of today, the Shiba Inu burn rate has drastically declined, suggesting a drop in interest among holders to burn SHIB. According to the project’s burn tracker Shibburn, the burn rate has fallen by nearly 100% in the last 24 hours.
Data from Shibburn reveals that only 1.04 million SHIB were destroyed in the past day, with a mere four burn transactions carried out. This is remarkably small compared to the tokens burnt the previous day, which was more than 250,000,000 SHIB.
Although the burn rate is down by about 99.63% in the past day, it has increased by over 240% in the past 7 days, with its overall supply now pegged at approximately 589.27 trillion SHIB.
Featured image from Unsplash, chart from Tradingview.com
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