The Shiba Inu ecosystem continues to prioritize reducing its circulating token supply, aiming to increase the value of SHIB. On March 9, a significant burn of 13.4 billion SHIB took place through the Shibarium protocol. Additionally, other ecosystem tokens, BONE, and LEASH, were also burned.
However, some members of the community believe the project lags behind its competitor, Floki Inu (FLOKI), in terms of token-burning effectiveness. This sentiment recently surfaced during an online interaction between a SHIB enthusiast and Shytoshi Kusama, the lead developer of Shiba Inu.
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Kusama on Decentralization and Responsible Burns
The inquiry from the SHIB community member centered on why the project couldn’t execute a large-scale burn similar to Floki Inu’s recent burn of 1 trillion tokens. Kusama’s response highlighted the core difference between the two projects.
Kusama emphasized that, unlike Floki Inu, Shiba Inu operates as a fully decentralized project. He elaborated that this principle has been in place since his involvement began when the project was only six months old. This decentralization philosophy underscores Kusama’s approach to token burning, prioritizing benefiting the community organically rather than fulfilling an arbitrary obligation.
In simpler terms, Kusama suggests that burning a large number of tokens solely to compete with another project might not be the most strategic approach for SHIB’s long-term success.
Because unlike Floki devs I don't have 1trillion to burn. Do you? Remember when I joined Shiba was 6 months old and fully decentralized. I just do it for teh people
— Shytoshi Kusama™ (@ShytoshiKusama) March 10, 2024
Floki Inu’s Aggressive Burn Strategy
Floki Inu’s recent burn initiative involved incinerating 2% of the meme coin’s total circulation. This burn spanned tokens on both the Ethereum and Binance Smart Chain networks. Notably, the project also implemented an additional burn of 14.57 billion tokens through the Floki DAO governance system.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
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Impact on Token Prices
Interestingly, both SHIB and FLOKI token prices have exhibited significant growth amidst these burn efforts. FLOKI is currently trading at $0.0002764 and has climbed 791.05% over the past month. SHIB is trading at $0.00003341, up 254.82% over the past month.
While SHIB hasn’t matched FLOKI’s recent surge, it has still demonstrated substantial growth. Meanwhile, a notable crypto analyst has also shown a potential path to $0.000052 for SHIB, bringing it closer to FLOKI ‘s remarkable surge.
Looking Ahead
While aggressive burns can demonstrably impact token prices in the short term, the long-term sustainability of such strategies remains unconfirmed. Shiba Inu’s focus on organic community growth and a decentralized ecosystem presents a different perspective on token value.
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