Could Shiba Inu Burn 99% of SHIB’s Circulating Supply?

Shytoshi Kusama, the pseudonymous lead developer of the Shiba Inu cryptocurrency, addresses the community question that burning 99% of SHIB’s circulating supply is possible.

Kusama noted that the now-achievable goal of incinerating 99% of SHIB’s circulating supply while technically possible, is not the ultimate solution for the ecosystem’s success. Furthermore, the assertion that a 99% burn is now within reach rests on the collaborative efforts of various projects within the Shiba Inu ecosystem.

Additionally, “The coordinated development and integration of these projects have created a synergistic environment that facilitates a level of token reduction previously considered unattainable. However, he conditions this possibility on further expansion” He added.

Moreover, Kusama clarifies that a burn rate of this magnitude would necessitate broader adoption of the Shiba Inu technology stack by a significant number of projects, ideally including several large-scale enterprises.

Shiba Inu Burn Token Could Push Token Price Surge

Kusama explains the potential drawbacks of an aggressively high burn rate of 99% of the token. Furthermore, it points out that while increased burning might initially drive up the SHIB price, this effect could be self-limiting. A significant price increase could make acquiring SHIB prohibitively expensive, thereby slowing down the burn rate itself.

However, Kusama advocates for a strategy centered on increased adoption and the development of real-world use cases for SHIB. He posits that a thriving ecosystem with demonstrable utility would organically reduce the incentive for users to burn their tokens, rendering mass incineration unnecessary.

This prioritization of utility aligns with previous statements from Kusama emphasizing the importance of mainstream adoption for driving SHIB’s price and attracting major centralized exchanges. Initiatives such as liquid staking, recently launched within the ecosystem, are presented as examples of this focus on expanding practical applications.

Moreover, the discussion regarding burn rates arose in response to Kusama’s request for community input on podcast topics, a recurring method used to address pressing issues within the Shiba Inu ecosystem.

Nonetheless, proactive engagement with the community highlights Kusama’s commitment to transparency and responsiveness. The ongoing dialogue within the Shiba Inu X community highlights the dynamic nature of the Shiba Inu project and the evolving strategies employed to navigate the challenges and opportunities within the cryptocurrency market.