Following Dogecoin, SHIB, the market’s second-largest meme coin, continues to see developments. With the announcement of an automatic SHIB burn mechanism, rumors about the total number of SHIB tokens planned to be burned each month in 2024 keep surfacing.
The Unfulfilled Dream of a Massive SHIB Burn
According to a 2022 post by a Shiba Inu community member ‘Queenie’ on X (formerly known as Twitter), she had made a prediction based on her views about the total amount of Shiba Inu tokens that could be removed from circulation through a burn portal within a year. According to Queenie, SHIB’s total supply could be reduced by over 111 trillion in a “bad” year.
This analysis by Queenie had also led to a rumor suggesting that 9.25 trillion SHIB could potentially be burned in January 2024. If this rumor were to come true and the mentioned 111 trillion SHIB were to be burned over a 12-month period, it would result in the removal of 9.25 trillion SHIB tokens from the market each month.
Significant SHIB burns have been taking place continuously in the Shiba Inu ecosystem since last year. According to information shared by Shibburn, which tracks SHIB burns, a total of 76 billion SHIB tokens were burned in 2023.
Looking back at last year, some of the most notable burns in 2023 include the process in December, where over 33 billion SHIB tokens were consecutively burned within the month.
On the other hand, the noticeable increase in the burn rate within the Shiba Inu ecosystem is not to be overlooked. It is known that an automatic burn system will be introduced in 2024, which could lead to even higher burn rates.
Shibarium and Automatic SHIB Burning
The Shiba Inu team recently shared a blog post announcing the development of a new mechanism that will increase the efficiency and productivity of monthly burning processes.
Shibarium offers a transformative token burning mechanism that is very important for the network’s economic model. This mechanism is designed to strategically reduce the token supply, potentially increase token value, and benefit the ecosystem.
According to the announcement, the SHIB burn mechanism consists of two stages. In the first stage, the SHIB burn process was manually tracked by an official distributor wallet. The second stage is planned to start this month, and from January 2024, SHIB token burn operations will be carried out with an automatic system.
From January onwards, the mechanism will transition to an automatic system. This stage will witness multiple upgrades to increase efficiency and reliability. The automatic burning process will operate based on predefined rules, making it more efficient and transparent.
SHIB burns from the past to the present have had positive effects on the price. The memory of Vitalik burning 90% of the SHIB tokens sent to him is still fresh in the minds of cryptocurrency followers. How much the automated mechanism will accelerate SHIB burns and affect the price is already a topic of curiosity.
