Luciethe marketing lead for the Shiba Inu ecosystem, has addressed concerns over the token’s large supply, which one user had described as a “major drawback” for the SHIB communityShe revealed plans to debase it soon, creating optimism within the community that could potentially fuel a price increase for Shiba Inu’s native token, SHIB.
“Epic” Shiba Inu Burn Strategy
In a recent X afterLucie clarified that the Shiba Inu developers could not change the token supply because Ryoshithe anonymous creator of the project, burned the keys, leaving no one in control. She emphasized that the only way to reduce the supply is for users to actively buy and burn Shiba Inu tokens.
This is hardly a surprise, as 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 leader, the plan is to build an epic system that attracts a large user base and uses SHIBARIUM daily, which she believes will require millions (even billions) of users. “The more users we have, the more SHIB can be burned, increasing its value over time,” Lucie said.
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 increasing the token’s value over time. In line with this goal, an automated burning mechanism was introduced last month to further improve the burning speed of Shiba Inu.
The Shiba Inu Fire GateShibTorch, 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 broad participation to succeed. Lucie, the Marketing Lead, emphasized that the key to success lies in growing the community, saying that it’s “all about growing the community and letting the system do its magic!”
Recent facts of the SHIB burn shows a significant 95.33% decrease in burn rate over the past 24 hours. During this period, 648,525 SHIB tokens were removed from circulation. This highlights the small efforts of the community to reduce the total supply of SHIB and produce tangible results.
Despite the community’s aggressive SHIB token burning, the cryptocurrency has not seen the expected price increase. At the time of writing, SHIB’s price is trading at $0.00001378, indicating a decline of 0.65% over the past 24 hours. However, some market observers believe that as SHIB gains wider acceptance, its price will follow suit.
Main image created with Dall.E, chart from Tradingview.com