This article is also available in Spanish.
Shiba Inu’s lead developer, Chitoshi Kusama, answered queries regarding the ambitious goal of burning 99% of the SHIB token supply in circulation. Kusama initially interacted with the community by asking questions for his podcast, saying: “What topic or question would you like to hear answered on my podcast? #ashamed.”
Burning 99% of Shiba Inu codes is “achievable”
This call for participation paved the way for subsequent discussions about a potential token burning strategy. Fang Zhang, CFO at LSP Finance, directly questioned the feasibility and strategic planning behind this mass burn: “Timeline and roadmap for burning 99% of Shib Token in circulation, please.”
In response to Chang’s inquiry, Kusama available An explanation of the challenges and considerations involved in burning 99% of SHIB tokens. He acknowledged the historical improbability of such an endeavor, noting that “burning 99% of the Sheep District seemed impossible just a few years ago, but with so many projects coming together to achieve this massive task, it is actually achievable.”
Related reading
Kusama explained the conditions necessary to achieve this result, emphasizing the adoption of the Shib technology package through multiple projects, especially large-scale projects, to facilitate the incineration process. “More and more projects or a few large projects are having to adopt the Shib technology stack,” said SHIB’s lead developer.
Kusama highlighted several important obstacles to achieving the Burn goal. He explained that if the incineration process begins to accelerate, it could cause the price of SHIB to rise as investors anticipate a rise, making incineration more expensive and thus slowing down the process. “Assuming things start to escalate to a massive burn, people will buy keeping in mind that the price will go to the moon. In this case, the burn will be more expensive, slowing down the burn,” Kusama said.
Related reading
Additionally, he emphasized that the strategic intent behind the burning is as important as the actual burning itself, saying: “It’s not the burning that’s important, it’s the intention.”
Furthermore, Kusama pointed out that token burning is not the only path to SHIB’s success. He explained that developing the utility for the memecoin is equally important, noting, “Finally, burning is not the only way that chip wins. If you say oh I’m rough, it’s going to take any long, it’s not short enough for idiots. So We find other ways to give memecoin utility and make sure we reach a point through viral distribution where people don’t want to burn the token anymore.
He stressed the importance of enhancing the utility of SHIB through mechanisms such as staking and developing new use cases for associated tokens such as BONE, LEASH, and Treat.
The proposed burn of 99% of SHIB’s total supply would create extreme scarcity. If demand remains stable or increases, a decrease in supply could lead to a significant rise in the value of each remaining SHIB token. This shift has the potential to elevate SHIB from its current status as a low-cost token to a more valuable asset.
However, Kusama explained that such a burn-in would be a gradual process, driven by the adoption and integration of SHIB technology across different projects perhaps over several years, rather than an immediate reduction.
As of press time, SHIB is trying to break above the 0.5 Fibonacci retracement level at $0.00002823. This technical level is derived from the highest level recorded on March 5 at $0.00004567 and the local low of $0.00001067 recorded on August 5. In the short term, a successful break above the 0.5 Fib level could pave the way towards the 0.618 Fib target at $0.00003235.
Featured image created with DALL.E, a chart from TradingView.com