The Shiba Inu (SHIB) community is advocating for increased token burning to reduce the cryptocurrency’s circulating supply and potentially boost its price.
The official burn tracker for SHIB, Shibburn, is exploring the possibility of collaborating with cryptocurrency exchange Binance to implement a burning mechanism similar to the one currently used for LUNC.
Read Also: Binance Burns 1.35 Billion LUNC
Community Requests Binance to Burn SHIB
This initiative follows a request from prominent Shiba Inu community member Lola, who politely petitioned Binance CEO Richard Teng to consider burning a portion of SHIB’s trading fees on the exchange. Lola highlighted Binance’s existing support for LUNC burning and expressed hope for a similar approach with SHIB.
A recent community poll by a community member revealed overwhelming support for burning SHIB on major exchanges like Binance and Coinbase. Over 96% of participants endorsed this proposal. However, these requests have yet to be acknowledged by the targeted exchanges, leaving community members to rely on independent burning initiatives.
Binance’s Role in LUNC Burning
Following the collapse of the Terra ecosystem in 2022, the community launched a recovery campaign aimed at reviving the prices of LUNC and USTC (formerly TerraUSD). A key element of this campaign involved sending LUNC tokens to a designated “dead wallet,” effectively removing them from circulation.
Binance pledged to support this effort by burning 100% of the LUNC trading fees collected from spot and margin trading pairs. However, this commitment was later reduced to 50% due to controversies surrounding re-minting the burned LUNC tokens.
Data from LUNC Metrics indicates that Binance has played a significant role in LUNC burning, contributing approximately 49.2% of the total burned tokens. To date, the exchange has incinerated over 62.13 billion LUNC, with a total value of $4.43 million. Similarly, Binance sent over 4.38 million USTC to the dead wallet, representing roughly 0.18% of the total USTC burned.
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Read Also: Binance Burns 1.7 Billion LUNC, Community Reacts
Potential Impact of Binance Burning Shiba Inu (SHIB)
While Binance has not expressed plans to extend its burning program to other tokens like SHIB, the community believes such a move could significantly reduce SHIB’s circulating supply, potentially leading to an increase in the price of the digital asset.
Currently, over 410.72 trillion SHIB tokens have been burned. However, despite these efforts and a large initial burn by Ethereum co-founder Vitalik Buterin in 2021, Shiba Inu still possesses a substantial circulating supply exceeding 583 trillion tokens.
The success of the Shiba Inu community’s campaign relies on the cooperation of major cryptocurrency exchanges like Binance. If implemented, a burning mechanism utilizing a portion of SHIB’s trading fees on these platforms could contribute to a reduction in circulating supply and potentially influence the price of the token.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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