Shiba Inu upcoming layer-2 network, as shared by the SHIB-focused Twitter page “SHIB Bezos,” plans to burn 5 trillion tokens monthly. This burn mechanism aims to reduce the circulating supply of SHIB gradually. Despite the ongoing burn, the impact on the asset’s price has been limited due to its massive supply.
Rumors suggest that Shiba Inu’s upcoming layer-2 network will create a unique and unprecedented burn mechanism. However, no official confirmation or detailed information is available regarding the specifics of this new burn mechanism.
Shiba Inu’s Shibarium and the Potential for Token Burning
Rumors surrounding Shiba Inu’s upcoming layer-2 network, Shibarium, have sparked discussions about the possibility of token burning. Shibarium could burn a substantial number of monthly tokens, potentially reaching up to 5 trillion. This would amount to a significant reduction in the circulating supply and potentially impact SHIB’s price dynamics.
If the rumored burn rate of 5 trillion tokens per month is accurate, it will destroy 60 trillion tokens within a year. To reach the desired price target of $0.01 while maintaining the current market cap of $4.7 billion, SHIB would need 470 billion tokens in circulation, necessitating the burning of the remaining 569.5 trillion tokens. However, assuming the burn rate remains consistent, this process would take approximately 9.5 years.
It’s important to note that the specifics of Shibarium’s burn mechanism and the exact burn rate still need to be confirmed. Rumors also suggest alternative scenarios, such as a burn rate of around 111 trillion tokens per year, potentially propelling SHIB to even higher price levels, like $0.1 or beyond. These speculations highlight the uncertainty surrounding the number of SHIB tokens that will be burned and its potential impact on the project.
While achieving the “one cent” goal remains possible if the rumors prove true, it is crucial to approach these discussions cautiously. The burn rate and market dynamics are subject to various factors, and the exact details of Shibarium’s launch and token-burning mechanisms have yet to be officially announced. Further insights into Shibarium may be revealed at the upcoming Blockchain Futurist Conference in Toronto, Canada, on August 15 and 16, where SHIB lead developer Shytoshi Kusama has hinted at a potential launch. However, an official confirmation has yet to be provided thus far. SHIB’s burn rate stands at a decrease of 60.24%, with 34.6 million tokens burned in the last 24 hours.
At press time, Shiba Inu is trading at $0.00000771 per coin.