The Shiba Inu community has been abuzz with discussions surrounding an ambitious strategy to burn 99% of the circulating SHIB token supply. This intriguing concept was addressed by Shiba Inu’s lead developer, Shytoshi Kusama, who recently invited questions from the community for his podcast. He asked, “What topic or question do you want to hear answered on my podcast?”
Can 99% of Shiba Inu Tokens Be Burned?
This call to engagement opened up a comprehensive dialogue on the feasibility and strategic planning required for such an extensive token burn. Fang Zhang, CFO at LSP Finance, directly questioned the practicality of the plan, asking for details on the timeline and roadmap for burning the 99% of the SHIB tokens in circulation.
In response, Kusama provided insights into the complexities and considerations involved. He acknowledged the historical improbability of achieving such a monumental task, stating that burning 99% of SHIB seemed impossible a few years ago. However, with multiple projects uniting towards this goal, it now appears achievable.
Strategic Conditions for Achieving the Burn
Kusama elaborated on the conditions necessary for the burn to succeed, highlighting the importance of the Shib tech stack’s adoption by multiple projects, especially large-scale initiatives. He explained that for the burn to be feasible, the Shib tech stack needs to be embraced by more and more projects or a few mega-large ones.
Several significant challenges were identified that could hinder the achievement of the burn target. Kusama noted that if the burning process gains momentum, it might lead to a surge in SHIB’s price as investors anticipate a value increase. This could make the burn more expensive and slow down the process, as people might buy anticipating that the price will rise significantly.
Understanding the Intent Behind the Burn
Furthermore, Kusama emphasized the strategic intent behind the burn, stating that it is as crucial as the burning process itself. He mentioned, “It’s not the burning that matters, it’s the intention.”
Beyond Token Burns: Enhancing SHIB’s Utility
Kusama pointed out that token burns are not the only path to SHIB’s success. The development of utility for the memecoin holds equal importance. He explained that while the burn is significant, finding ways to enhance the token’s utility through mechanisms like staking and developing new use cases for associated tokens such as BONE, LEASH, and Treat is crucial.
The proposed burn of 99% of SHIB’s total supply aims to create extreme scarcity. If demand remains stable or increases, the reduced supply could lead to a significant rise in the value of each remaining SHIB token. This shift could potentially elevate SHIB from its current status as a low-cost meme token to a more valuable asset.
The Gradual Journey of Token Burn
However, Kusama clarified that such a burn would be a gradual process. It would be driven by the adoption and integration of SHIB’s technology across various projects, likely taking place over several years rather than resulting in an immediate reduction.
As of the latest updates, SHIB is attempting to breach the 0.5 Fibonacci retracement level at $0.00002823. This technical level is derived from the March 5 high of $0.00004567 and the local low of $0.00001067 observed on August 5. In the short term, a successful breakout above the 0.5 Fib level could pave the way toward the 0.618 Fib target at $0.00003235.
