The founder of WallStreetBets, Jaime Rogozinski, critiques the impact of token burns on Shiba Inu’s overall supply.
In an April 11 tweet, Rogozinski pointed out that Shiba Inu’s supply has remained unchanged despite the community’s commitment to burns. This indicates that the number of SHIB tokens burned so far might be too small to impact Shiba Inu’s supply.
Notably, the expert undercut the significance of burns on a token’s economic value. Rogozinski suggested that a token’s underlying potential matters, not its size or quantity. This suggests that crypto enthusiasts should focus more on improving the quality of a token rather than reducing its size through burns.
Shiba Inu Burn Efforts
For context, Shiba Inu community members started burning SHIB soon after the cryptocurrency’s launch in August 2020. Shiba Inu was launched with a total supply of 1 quadrillion tokens. So far, about 410.75 trillion SHIB, or 41% of the total supply, have been burned.
While this is commendable, it is important to note that Ethereum co-founder Vitalik Buterin burned most of these tokens. In May 2021, Buterin sent about 410 trillion SHIB to the official burn address in a single transaction.
Despite the Shiba Inu community burning SHIB regularly since Buterin’s incineration, the token’s total supply has not changed much, currently standing at 589.25 trillion. This suggests that less than 1 trillion SHIB tokens have been destroyed in the past four years.
Kusama Proposes Only Way to Boost SHIB Value
While some community members are still advocating for more burns to drive Shiba Inu’s value upward, the project’s leader, Shytoshi Kusama, has a different mindset. In his view, burning SHIB is not the only factor that could increase its value.
He believes that the only way to increase SHIB’s price is to drive adoption by developing real-world use cases for SHIB. According to him, once SHIB becomes valuable, it would be difficult for users to even consider burning the token.
The team has remained focused on driving Shiba Inu’s adoption and has unveiled several projects to integrate into the ecosystem to achieve this feat. Shiba Inu, which launched as a token in 2020, has evolved into an ecosystem with multiple projects.
Some of these projects include Shibarium, ShibaSwap, and Shib games like Shiba Eternity, SHIB: The Metaverse, and Shib Marketplace. While most of these projects are operational, the team is still developing others to drive SHIB’s adoption potentially.
SHIB Team Efforts For Burns
Interestingly, the team has also contributed to reducing SHIB’s enormous supply via Shibarium. A portion of the blockchain’s fees is used to buy and burn SHIB. So far, this approach has helped permanently remove over 50 billion SHIB from circulation. It has now automated the process of burning SHIB via Shibarium by introducing a burn portal named Shib Torch.
In addition, the Shiba Inu ecosystem team organizes certain events to raise funds to support SHIB burns. For instance, it introduced a contest on its collectible card game that will enhance SHIB burning. The competition, launched in February, is expected to burn 10 billion SHIB tokens daily.
Leave a Reply