The topic that has been making the rounds lately in the Shiba Inu (SHIB) community is the Automated Burn Portal. This topic has been raising speculation about how many SHIB tokens will be burned. The predictions range from billions to trillions of tokens monthly, and these automated burns could be the catalyst for SHIB’s resurgence.
#SHIBARIUM team member Ragnar tweets that 9.25 trillion $SHIB can be burned this month 🔥🔥 pic.twitter.com/guwhXQwM9Y
— $SHIB BPP (@ShibBPP) January 6, 2024
Shibarium’s New Automated Burn Portal
Since unveiling plans for Shibarium-powered burns, the Shiba Inu community has been buzzing. While some experts predict massive monthly burns, others have remained skeptical, even with the massive Shibarium-powered burns so far.
In 2022, Queenie, a SHIB moderator on Discord, boldly projected a staggering 111 trillion SHIB to be burnt annually through Shibarium. This figure represents roughly 20% of the circulating supply. If the SHIB community can accomplish this, it could translate to a monthly burn of 9.25 trillion SHIB.
With the Automated Burn Portal, SHIB could reach this goal. Queenie’s analysis sets the burns from ShibaSwap 2.0 and the Decentralized Exchange (DEX) at 44 billion tokens. Doubling that with Shibarium token burns gives 88 billion tokens. The key value in her analysis was the addition of token burns from other mechanisms.
Shibarium’s burn mechanism will operate under pre-defined rules. As detailed in their documentation, 70% of the network’s Base fee will be used to purchase and burn SHIB. However, the tokens don’t disappear into thin air – they wait patiently in a burn contract until it reaches a $25,000 threshold, and then the Automated Burn Portal steps in.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Why Hasn’t Shiba Inu (SHIB) Soared?
Before automation kicks in, the Shibarium team warmed up the engines with four manual burns last month, sending 33.8 billion SHIB to the dead wallet. Although this is little compared to the expected volume, this shows the intent of the devs.
Despite the burn anticipation, SHIB hasn’t replicated the bullish rallies of other cryptocurrencies like SOL. SHIB was consolidating around $0.00001 for a while before falling earlier this week with the rest of the market. Although it recovered, it dropped again and is currently trading at $0.00000982.
However, with the community focused heavily on token burns to raise SHIB’s price, they might be neglecting an important strategy. While token burns are crucial, last year, Shiba Inu’s lead developer warned against relying solely on burning to propel the price. He emphasizes the need for wider Shibarium adoption to send the meme coin to new heights.
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