The year kicks off with exciting news for the Shiba Inu community. As promised in a blog post from early December 2023, the team behind the beloved meme coin is transitioning Shibarium burns to an automated system starting this month.
This move marks a significant step forward in the ongoing effort to reduce SHIB’s circulating supply and potentially boost its value.
Previously, burns were conducted manually, with the team sending sizable chunks of SHIB to a dead wallet at their discretion. Shibarium-powered burns began in December. Four manual burns totaling a whopping 33.8 billion SHIB were executed last month, with the team remaining committed to reducing the Shiba Inu circulating supply.
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However, the manual process had limitations. Now, with the transition to automation, Shibarium burn operations will be governed by predefined rules, ensuring greater transparency and predictability.
The Automated Burn Process
Shibarium, the dedicated Layer 2 blockchain for the Shiba Inu ecosystem, plays a crucial role in this new era of automated burns. A portion of the network’s gas fees, paid in Bone ShibaSwap (BONE), will be automatically converted to SHIB and sent to the burn wallet whenever the burn contract reaches a predetermined threshold of $25,000 in BONE.
This mechanism ensures regular burns, potentially even more frequent than manual ones. While the individual burn amounts might be smaller compared to the initial manual transactions, the consistent, automated process can significantly impact SHIB’s overall supply in the long run.
It’s important to note that the number of SHIB tokens burned will depend on the token’s price at the time. During the manual phase, higher SHIB prices led to larger burn quantities.
However, the automated system guarantees consistent burns regardless of price fluctuations, contributing to a steady reduction in circulating supply over time.
By increasing the token’s scarcity, they aim to drive greater long-term value increase for SHIB holders and keep the meme coin’s Growth sustainable.
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Data from Shibburn shows that over 410.6 trillion SHIB has been burned so far, with varying effects on SHIB’s price. The Shiba Inu ecosystem is taking a bold step forward with the automated burns.
This strategic move, coupled with the ongoing development of Shibarium and various decentralized finance (DeFi) projects within the ecosystem, paints a promising picture for the future of Shiba Inu and its loyal community.
Massive SHIB burns have a history of boosting the token’s price, with a similar occurrence in late December. It will be interesting to see where these burns can place Shiba Inu in the 2024 bull run.
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